Why EA Stock Is Diving Today

Video game maker Electronic Arts (EA) is plummeting 17% after the company reported lower-than-expected bookings for its fiscal third quarter that ended in December. EA also cut its full-year bookings guidance for its current fiscal year.

EA blamed the bad news primarily on the subpar performance of its new soccer game, EA Sports FC 2025.

A Look at EA’s Results and Guidance

The firm generated Q3 bookings of $2.22 billion last quarter, below its prior outlook of $2.4 billion to $2.55 billion. Moreover, the video game maker now expects its bookings for its current full fiscal year to come in at $7 billion to $7.15 billion, versus its previous guidance of $7.5 billion to $7.8 billion. Also importantly, EA is predicting that its bookings obtained after game purchases will fall by about 5% during its current fiscal year. It had previously predicted that this metric would climb by about 5%.

The company’s latest soccer game, EA Sports FC 25 “underperformed our net bookings expectations,” CEO Andrew Wilson said in a statement. After reviews of the game were underwhelming following its release last September, the revenue generated by the company’s soccer games is expected to drop this quarter versus the same period a year earlier.

The Recent Price Action of EA Stock

In the last month, the shares have sunk 21.5%, while they have slumped 19% in the last three months.

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Disclosure: None. This article is originally published at Insider Monkey.