What happened

Video game developer Electronic Arts (NASDAQ:EA) lost 11% last month, according to data provided by S&P Global Market Intelligence, compared to a 2.8% increase for the broader stock market and a 5% decline for peer Activision Blizzard.

The dip still left both companies' shareholders well ahead of the broader market so far in 2017, though -- and over the past one-year, three-year, and five-year time frames.

So what

Investors had the opportunity last month to digest EA's third-quarter earnings report that was released after the market closed on the final day of October. That announcement contained plenty of good news about current business trends, including a 19% spike in digital revenue along with record gross profit and operating cash flow.

EA's sports franchises are performing particularly well, with titles like Madden NFL 18 and FIFA driving recurring revenue as the business shifts further toward a digital distribution model that lengthens the lifetime value of each new game release.

Now what

EA recently affirmed its full-year sales outlook while boosting its earnings and cash flow targets further into record territory. Part of that rising optimism can be tied to a strong broader industry, with demand for new software and gaming hardware releases likely to benefit all the biggest players in the year ahead. In other words, EA's business outlook has never been brighter, even if the stock took a small step back last month.