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Giant walking robots that only last about two minutes in combat might not sound fiscally responsible, but it’s working out well for Electronic Arts.
The Titanfall publisher reported earnings today that surpassed expectations for its fiscal fourth quarter, which ended March 31.
The publisher reported an earnings per share (EPS) of 48 cents compared to estimates of only 11 cents. Revenues for the quarter were $914 million versus Wall Street estimates of $812 million, although that is down from $1.04 billion in the same quarter last year.
“Electronic Arts delivered outstanding results in fiscal year 2014,” EA chief executive officer Andrew Wilson said in a statement. “Most importantly, we produced hit games, innovative digital content and services, and amazing entertainment for our players around the world. It was a transformative year for EA in a dynamic year for our industry, and I’m even more excited for the new experiences we will deliver in fiscal year 2015 and beyond.”
Last quarter was key for Electronic Arts. It launched its new sci-fi shooter franchise Titanfall in partnership with developer Respawn Entertainment, which owns the property. The game performed well despite EA limiting its release to the Xbox One and PC in the fourth quarter. In April, Titanfall debuted for Xbox 360 as well, but this is not reflected in the earnings report.
For the year, EA generated $4.02 billion in spending, which is up from $3.8 billion in fiscal 2013.
“While navigating through a year of tremendous change in the industry, which included a challenging console transition, we were able to exceed revenue guidance, lower our operating expenses, double operating cash flows, and invest in new products and services for the future,” EA chief financial officer Blake Jorgensen said. “On a non-GAAP basis, we drove higher gross margins, improving our operating profit margins to 18 percent.”
For fiscal 2015, EA is drastically increasing its guidance. Looking ahead to major releases from franchises that include Dragon Age, The Sims, UFC, and FIFA, the company is anticipating an EPS of $1.85. That’s significantly higher than the Wall Street estimate of $1.51.
This aggressive guidance comes despite the lack of a new Battlefield this year, which was a major driver of revenue for EA in fiscal 2014.
EA also released the following infographic to highlight its 2014:
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