Shares of Electronic Arts Inc. (NASDAQ:EA) were down 4.2% at the bottom of the noon hour on October 18. The company announced that it would be forced to delay its next Star Wars title, slated for fiscal 2019, due to design issues.
Originally pitched as a linear action-adventure title, feedback has motivated EA to change the strategy regarding the game. The rumoured project lead had originally worked on the highly successful series of Uncharted games, which were a critical and commercial success boasting stunning visuals. However, her participation has now been called in to question by recent reports.
The stock price of EA has increased 41.8% in 2017 and 33% year over year. EA released its fiscal 2018 first quarter results on July 27. The company posted digital net sales of $3.14 billion which represented a 23% increase year over year. Its user base on several key platforms including FIFA Mobile, NBA LIVE Mobile, and Battlefield increased substantially.
Net income climbed to $644 million compared to $440 million in the fiscal first quarter of 2017. At years end EA projects to post net sales of $5.1 billion and net income of $1.1 billion. It remains to be seen whether EA will be forced to adjust its forecast for fiscal 2019 with the duration of the delay on this new game as yet unknown.
Still, EA has posted impressive growth in its last few quarters and this could be a great opportunity to buy the dip as the company reorients on this huge title.
