Ahead of the Bell: Electronic Arts

EA's adjusted fourth-quarter profit and sales topped analyst estimates, but for the coming year, it forecast a profit of 25 to 52 cents per share, or $1.30 to $1.70 per share excluding one-time items. Revenue is expected to range from $4.9 billion to $5.15 billion.

On average, analysts expected a larger profit of $1.73 per share in profit and $4.57 billion in revenue for the year ending March 31, 2009. Several cut their estimates late Tuesday or early Wednesady.

Citi Investment Research analyst Brent Thill said EA is expecting less investment income and high research and development costs. He said the R&D costs will have to decrease -compared with the company's revenue -if EA wants to reach its long-term goals.

He kept a "Buy" rating on the stock.

Lehman Brothers analyst Jeetil Patel reiterated a "Sell" rating. He said profit margins in publishing -EA's core business -are weak, with the company making more of its profits from the low-margin distribution business.

EA shares slipped $1.27 to $53.30 in premarket trading. The stock closed at $54.57 Tuesday.