PracticeAuditGames company shares unaffected by accounting changes

Games company shares unaffected by accounting changes

Electronic Arts beats Wall Street's expectations to show a rise in its share price despite a net loss in its results

Accounting changes caused Electronic Arts, the gaming company responsible for
The Sims, to show a net loss during its second quarter results posted yesterday.

For the quarter, EA posted a net loss of $195m, or 62 cents per share,
compared with a profit of $22m, or 7 cents per share, in the same period a year
ago.

Despite this, the shares climbed 5% as the company promised a new product
lineup in time for the holiday season.

EA’s adjusted earnings – which did not include the change in revenue
recognition and other items – were $87m, up from $65m a year earlier. According
to a survey by Thompson Financial, this figure translates into EA beating Wall
Street’s expectations, AP reported.

EA’s CFO, Warren Jenson, said the company had worked to change its lineup and
will have seven titles for the Wii in time for the holidays, with more also
planned for Nintendo handheld games.

Further reading:

Electronic
Arts Posts 2Q Net Loss

Electronic
Arts 2Q adjusted earnings beat estimate, 3Q outlook below consensus

Related Articles

Is predictive analytics the end of the annual audit?

Audit Is predictive analytics the end of the annual audit?

5d Martin Herron, MHA MacIntyre Hudson
Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

Audit Auditors ‘in the dock’ over Carillion as report calls for Big Four break-up

1w Emma Smith, Managing Editor
PCAOB sanctions former Deloitte Turkey CEOs over altered documents

Audit PCAOB sanctions former Deloitte Turkey CEOs over altered documents

2w Alia Shoaib, Reporter
KPMG South Africa to review past audit work amid fresh scandal

Audit KPMG South Africa to review past audit work amid fresh scandal

1m Alia Shoaib, Reporter
FRC introduces £10m sanctions for Big Four firms

Audit FRC introduces £10m sanctions for Big Four firms

2m Alia Shoaib, Reporter
Ukraine’s PrivatBank files $3bn claim against PwC

Audit Ukraine’s PrivatBank files $3bn claim against PwC

2m Alia Shoaib, Reporter
Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

Audit Grant Thornton to exit FTSE 350 audit market, citing Big Four dominance

2m Alia Shoaib, Reporter
Big Four dominate FTSE 250 audit market in Q1 rankings

Audit Big Four dominate FTSE 250 audit market in Q1 rankings

3m Alia Shoaib, Reporter