US corporate results round up
EA loses game subscribers
Electronic Arts’ adjusted profit fell in the fourth quarter as it hemorrhaged subscribers for its flagship Star Wars game, knocking its shares down ten per cent in after-hours trading.
The company last night posted total revenue of $1.37bn, compared with $1.09bn a year ago for the first three months of 2012.
Its net income rose to $400m, compared with $151m a year ago. Its futuristic game, Mass Effect 3, helped drive sales, the company said.
But adjusted for the deferral of digital revenue and other items, the company said profit fell 33 per cent to $56m.
Tyson tops profit forecasts
CONVENIENCE food maker Tyson posted higher-than-expected second quarter profits yesterday, as price hikes helped offset weak beef sales, and the firm expressed optimism about the year.
Despite a mad cow disease scare that dampened demand for beef products in the States, Tyson said net income in the first three months of the year rose 4.4 per cent to $166m.
Sales rose 3.3 per cent to $8.27bn, but fell short of analysts estimates.
The company said it expects US c production of chicken, beef, pork and turkey to fall four per cent this year, which should support higher pricing.
Cognizant plunges on warning
COGNIZANT’S shares fell by a fifth yesterday as the information technology services provider lowered its full year forecast for the first time in nearly four years. The New Jersey-based company posted an 11 per cent growth in Europe for the first quarter and said profits jumped 17 per cent to $243.6m (£150.5m). But frantic traders hacked billions off Cognizant’s market value after it said sales were flat in the banking sector, which accounts for a quarter of the company’s revenues. The firm admitted it expects the sector to remain sluggish for the rest of the year, and cut its revenue forecast by $190m to $7.53bn.
Avis motors ahead despite loss
Car rental company Avis Budget Group yesterday posted a quarterly loss on acquisition-related expenses, but revenue rose on improved travel demand across most of its markets.
Avis Budget bought Avis Europe for £635m last year, and the firm yesterday reported $40m in acquisition costs and restructuring costs.
The company reported a net loss of $23m for the first quarter, compared with earnings of $7m a year earlier.
Revenue rose 31 per cent to $1.62bn, while expenses increased 35 per cent to $1.65bn. The firm’s shares rose almost three per cent yesterday.