Electronic Arts forecasts second-quarter bookings above estimates

(Reuters) – Videogame publisher Electronic Arts (NASDAQ:) forecast second-quarter bookings above analysts’ expectations on Tuesday, citing robust sales of its popular titles such as “EA FC 24”.

Shares of the Redwood (NYSE:) City, California-based company rose 2.6% in extended trading.

EA’s optimistic forecast suggests the firm is benefiting from increased spending on its popular sports games like the newly released “EA Sports College Football 25”, indicating a potential rebound in the gaming industry after a prolonged downturn.

EA has made significant investments in reviving its college football franchise after a decade-long break as it looks to drive bookings growth amidst intense competition from publishers such as Take-Two (NASDAQ:) Interactive, Ubisoft, and Roblox.

Based on engagement trends in the week following its release, “College Football 25” is expected to outsell popular American football video game “Madden” and surpass the sales of Take-Two’s “NBA 2K”, according to analysts at TD Cowen.

While analysts remain optimistic about EA’s “College Football 25”, they see weakness around Apex Legends due to recent engagement trends and player sentiment.

The company said in May that its live service net bookings were offset by declines in Apex Legends for the fourth quarter.

EA forecast second-quarter bookings in a range of $1.95 billion to $2.05 billion, the midpoint of which is above analysts’ average estimate of $1.95 billion, according to LSEG data.

Bookings for the quarter came in at $1.26 billion, missing estimates of $1.29 billion.

The company earned $1.04 per share, compared with $1.47 per share a year ago, and left its forecast for full-year bookings unchanged.