EA, AMZN, NOK, and ALU Fell on Earnings Releases, Announcements


Feb. 5 2016, Published 10:41 a.m. ET

Electronic Arts fell on weak guidance

Shares of video game giant Electronic Arts (EA) fell 7.5% to $64.54 on January 29, 2016, after the company declared its fiscal 3Q16 results. It reported non-GAAP (generally accepted accounting principles) revenues of $1.8 billion, above its guidance of $1.8 billion. Its diluted non-GAAP earnings per share were $1.83, above its guidance of $1.75.

Operating cash flow of $889 million was a record in the company’s history. Analysts expected revenues of $1.8 billion and earnings per share of $1.8 in fiscal 3Q16.

However, shares fell as the company provided a weak forecast for fiscal 4Q16. In the trailing-five-day period, shares of EA have fallen 15.8%.

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Amazon fell as results missed analysts’ estimates

E-commerce giant Amazon.com (AMZN) reported its 4Q15 earnings on January 28, 2016. Amazon’s disclosure sounded a negative note, and the market reaction remained hostile, which drove Amazon’s shares down 14%, despite the fact that it had achieved its highest quarterly growth ever.

The reason for this appears to have been that Amazon’s top and bottom lines both fell below analysts’ estimates, even though these figures came within the range of the company’s guidance.

Shares of Amazon have fallen 15.6% in the trailing-five-day period.

Nokia received arbitration decision in Samsung patent dispute

Shares of Nokia (NOK) and Alcatel-Lucent (ALU) each fell 12% on January 29, 2016, to $6.34 and $3.48, respectively. Nokia announced that it had received an arbitration decision regarding a patent dispute with Korea’s (EWY) Samsung (SSNLF). Even though Nokia will receive a monetary award as part of the arbitration, analysts were expecting much more. The merger between Nokia and ALU is expected to close in early 2016, which is why ALU was also affected by this news.


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