NEW YORK (AP) -- Shares of Electronic Arts shares jumped before Wednesday's opening bell after the video game publisher projected a better-than-expected profits for the current fiscal year.
The Redwood City, Calif., company reported late Tuesday that it expected adjusted profit of about $1.20 per share, well above what Wall Street was expecting, according to a poll by FactSet.
Revenue is expected to total about $3.5 billion.
Sterne Agee analyst Arvind Bhatia boosted his price target for the stock by $3, to $25, calling the company's fiscal 2014 product lineup solid.
"Electronic Arts seems well positioned to benefit from the upcoming video game product upgrade cycle," Bhatia, who also backed his "Buy" rating for the stock, wrote in a note to investors. "Management's renewed focus on cost control is refreshing and should bolster investor confidence in the company."
But Janney Capital Markets analyst Shawn Milne stuck "Neutral" rating, warning that uncertainty still surrounds the investments and timing related to the next generation of video games. He did increase his fair value estimate for the stock by $1, to $18.
For the current quarter, which ends on June 30, Electronic Arts Inc. said it expects to post an adjusted loss of 62 cents per share on revenue of about $875 million, or $450 million after adjustments.
The company also projected an adjusted profit of 55 cents per share for the quarter that ended on March 31, 2013, while analysts expect earnings of 57 cents per share.
Total net revenue for that quarter is expected to total $1.21 billion, or $1.04 billion after adjustments. Analysts expect $1.03 billion.
Electronic Arts shares rose $1.14, or 6 percent, to $19.55 in premarket trading.
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