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EA +1.8% as bookings beat, tax benefit assists profitsBy: Jason Aycock
Electronic Arts (NASDAQ:EA) is up 1.8% postmarket after topping revenue expectations in its fiscal Q1 report, though profits fell short of the bar.
Bookings as reported ticked down; digital net bookings for the trailing 12 months rose 5%, to $3.73B (76% of total net bookings).
Net revenue breakout: Product, $166M (down 17.8%); Service and other, $1.04B (up 11.6%).
Net cash from operations was $158M ($1.585B for trailing 12 months).
A number of tax events occurred during the quarter (including those around EA's Swiss subsidiary) that lead the company to recognize a benefit for Q1, Q2 and the full year.
That led net income to swing to $1.421B from a year-ago $293M. The company recognized $1.08B of the income tax benefit during the quarter.
For Q2, it's guiding to net bookings of $1.23B, with net income of $776M ($620M coming from income tax benefits).
For the full year, it expects net bookings of $5.1B and net income of $2.795B (about $1.7B of that coming from the income tax benefits).
Source: Seeking Alpha
https://seekingalpha.com/news/3483810-e ... email_link
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