Investing.com - Electronic Arts (NASDAQ:EA) surged in midday trade on Wednesday after its revenue came in better than expected thanks to its core battle royale game "Apex Legends."
Electronic Arts (NASDAQ:EA) stock rose 7.7%, while Activision Blizzard (NASDAQ:ATVI) was up 2.8% and Zynga (NASDAQ:ZNGA) inched up 0.5%.
The video game company reported earnings per share of $0.03, excluding a one-time gain for the quarter, on $743 million in revenue. Both the top and bottom lines came in better than expected, although it was the top-line beat the Street cheered.
The company said that due to various events in the last quarter, it will recognize a $1.7 billion tax benefit during fiscal year 2020, with $1.08 billion in the first fiscal quarter and the $620 million after the Swiss tax rate is altered due to a prior referendum.
The success of its “Apex Legends,” “The Sims” and other games helped the company's sales during its first fiscal quarter.
“From great new games to live services with longevity, subscriptions on more platforms and competitive gaming for more franchises, we’re pushing to lead with innovation, quality and choice for our players,” CEO Andrew Wilson said in a statement.