Electronic Arts Inc (NASDAQ:EA) stock fell 1.73% (As on May 8, 11:44:05 AM UTC-4, Source: Google Finance) after the company forecast full-year bookings below Wall Street estimates amid a broader spending slowdown in the gaming industry due to an uncertain economic outlook. For the fourth quarter, the company, which also makes games like “Star Wars Jedi: Survivor,” posted bookings of $1.67 billion, missing estimates of $1.77 billion. Growth in personal computing and console gaming is expected to remain below pre-pandemic levels as gamers record fewer hours of playtime owing to weaker release schedules, data from research firm Newzoo showed. EA cut its work force by 5 per cent in February as part of a restructuring plan, which includes a reduction in office space. Further, the global football franchise grew net bookings by high-teens percent in FY24. During FY24, our EA SPORTS Madden NFL franchise delivered record net bookings, up 6% year-over-year and double-digit growth in weekly average users for both Madden NFL 24 and Madden Mobile.

EA in the fourth quarter of FY 24 has reported the adjusted earnings per share of $1.37, missing the analysts’ estimates for the adjusted earnings per share of $1.52.

Additionally, the company has authorized a new stock repurchase program of $5 billion over three years and has declared a quarterly cash dividend of $0.19 per share of the Company’s common stock. The dividend is payable on June 19, 2024 to stockholders of record as of the close of business on May 29, 2024. For FY24, net cash provided by operating activities was a fiscal year record $2.315 billion, up 49% year-over-year. During FY24, EA returned $1.505 billion to stockholders through stock repurchases and dividends.

For fiscal 2025, net revenue is expected to be approximately $7.100 billion to $7.500 billion, Change in deferred net revenue (online-enabled games) is expected to be approximately $200 million, Net income is expected to be approximately $904 million to $1.085 billion, Diluted earnings per share is expected to be approximately $3.34 to $4.00 and Operating cash flow is expected to be approximately $2.050 billion to $2.250 billion. The company forecast fiscal year 2025 bookings in the range of $7.30 billion to $7.70 billion, compared with average analysts’ estimate of $7.76 billion, according to LSEG data.

For the first quarter the company expects bookings in the range of $1.15 billion and $1.25 billion, compared with estimates of $1.44 billion.