Job cuts, game delays, a lowered earnings outlook and increased losses marred Electronic Arts' Q2 results on Thursday.

In effect, EA shares dropped nearly 20 percent to $22.26, hovering just above the 52-week low of $21.91 in morning trading on the Nasdaq.

Lazard Capital Markets analyst Colin Sebastian lowered his share rating for EA to "hold" from "buy" following EA's earnings report.

The analyst cited "lower than expected margins, a more aggressive growth outlook for the holidays and related risks to the company’s longer-term financial targets" as the reasoning behind the downgrade.

"...With peak cycle margins perhaps only two years away before development begins for the next generation of video game software, we believe EA is running short on time to generate the profits and cash flow necessary to justify a premium valuation," he wrote in a Friday research note.

On Thursday, EA reported Q2 sales that rose to $894 million, compared to $640 million a year ago.

However, net loss for the quarter increased to $310 million from a loss of $195 million.

The company also announced that it would be cutting 6 percent of its workforce, or around 600 jobs.

Meanwhile, Wedbush Morgan's Michael Pachter maintained his "strong buy" rating, and Arvind Bhatia with Stern Agee maintained his "buy" rating.