Electronic Arts Inc. reported sales and profit that mostly beat Wall Street estimates, but the video-game publisher also issued a forecast that suggested the current quarter will be tougher.

Adjusted revenue for the period ending in March -- the company’s fiscal fourth quarter -- should rise to US$1.15 billion, Electronic Arts said Wednesday. But that’s below the US$1.21 billion that analysts had forecast. Profit excluding certain items will be 93 cents U.S., the company predicted, while analysts expected 98 cents.

The forecast overshadowed a successful holiday quarter for Electronic Arts, in which sales and profit slightly beat Wall Street’s outlook. The company registered gains in both digital sales and packaged goods in the latest period, helped by growth from FIFA Ultimate Team and The Sims.

New releases such as Plants vs. Zombies: Battle for Neighborville and Star Wars Jedi: Fallen Order, along with live services, also performed well during the period ended Dec. 31. Star Wars is expected to sell 10 million units in the fiscal year, the company said.

Shares of Electronic Arts, based in Redwood City, California, initially plunged on the report, dropping 7.3% in extended trading. But they mostly recovered and were down must 1.5% later.

Overly high expectations across tech stocks this earnings season may have contributed to the reaction, according to Matthew Kanterman, an analyst at Bloomberg Intelligence.

‘Elevated Expectations’

“EA results were solid, but the guidance just wasn’t strong enough for elevated expectations, especially after the run-up in shares that started in 4Q,” Kanterman said. “Still, the longer-term drivers for EA appear intact and we remain encouraged by its long-term prospects.”

The company is looking to boost growth. It’s working with a partner in China to expand Apex Legends in that market, is expanding its presence in esports, and is looking at acquisitions in mobile, PC games and high-definition gaming, Chief Financial Officer Blake Jorgensen said in an interview.

“When people start to understand the strength of the business -- net revenues up dramatically year over year, incredible products delivered, live service growth -- I think people will understand, ‘Wow, these people continue to deliver,’” Jorgensen said.

The company won’t release the next version of Battlefield for more than a year -- in fiscal 2022, Jorgensen said.

“Battlefield is the game that will take advantage of the power of the new consoles, and we wanted to make sure we release that when there’s a bigger installed market of consoles,” Jorgensen said.