Yesterday, 2:13 PM
- Electronic Arts (NASDAQ:EA) is down for a second day, -2%, after disappointing GameStop results sent major game makers lower.
- Oppenheimer, though, is joining in with Macquarie on the opinion that worries about Star Wars: Battlefront are likely overdone.
- “We believe the selloff is excessive, and that the title will sell strongly in the coming months," wrote analyst Sean McGowan. "We recommend investors buy on the weakness."
- Other factors may contribute to GameStop's note that Battlefront isn't meeting its expectations, he says: More customers could be choosing to buy online rather than from physical retail, and GameStop's own plans to feature the game in its Black Friday sales could mean customers deferring purchase decisions until the weekend.
- The firm maintains an Outperform rating on EA shares and a price target of $83; with shares currently trading at $67.64, that implies 23% upside from here.
- Previously: EA, Activision, Take-Two lower after GameStop disappoints (Nov. 23 2015)
- Previously: Macquarie: Despite reviews, EA's 'Star Wars' game likely to be big hit (Nov. 18 2015)
- Previously: EA launches 'Star Wars: Battlefront' to mixed reviews (Nov. 17 2015)
Mon, Nov. 23, 11:55 AM
- Major videogame makers are trading lower today despite modest broader market gains, after key retailer GameStop posted disappointing earnings and guidance today.
- Electronic Arts (NASDAQ:EA) is off 5.8%, Activision Blizzard (NASDAQ:ATVI) down 0.6% and Take-Two Interactive (NASDAQ:TTWO) off 1.7% following the results.
- Revenues declined at GameStop (counting currency effects) and its sales mix tilted toward pre-owned games, as the percentage of sales devoted to new video game hardware and new software both declined.
- Previously: GameStop craters after earnings and guidance disappoint (Nov. 23 2015)
- Previously: GameStop misses by $0.05, misses on revenue (Nov. 23 2015)
Tue, Nov. 17, 3:18 PM
- It's launch day for Star Wars: Battlefront, one of the year's biggest videogame rollouts, but Electronic Arts (NASDAQ:EA) may want to skip the earliest reviews.
- The game is getting a 73 rating -- "mixed or average reviews" -- on Metacritic for its Xbox One version (15 critics). The PlayStation 4 version is faring a bit better with a 78 (generally favorable), from 13 critics.
- EA shares are flat today, while rivals Activision Blizzard (ATVI +3.1%) and Take-Two (TTWO +2.4%) are much stronger.
- Mizuho's Neil Doshi is unperturbed; many of the worst reviews were from people expecting a single-player campaign, he says, and major sites have yet to post their takes. He still agrees with EA that the company could sell 13M units by the end of March and reiterated a Buy rating and $84 target (near 24% upside implied).
- Along with reviewers, Piper Jaffray's Michael Olson noted a dearth of content in the game as sold, but industry trends suggest that can be remedied by a year of strong downloadable content that EA could provide. Olson has an Overweight rating and an $87 price target.
- Previously: EA +1% as Oppenheimer launches at Outperform on strong slate, margins (Nov. 12 2015)
- Previously: Electronic Arts sinks 5% after beat-and-raise, bullish targets (Oct. 30 2015)
- Previously: Electronic Arts +1.6% as Piper Jaffray reiterates Buy (Oct. 27 2015)
Fri, Oct. 30, 3:18 PM
- Electronic Arts (NASDAQ:EA) has slipped 5% today -- despite a solid quarter for fiscal Q2 where it beat expectations and raised both full-year guidance and sales expectations for its flagship holiday release, Star Wars: Battlefront, not to mention analysts boosting price targets today. What gives?
- For one thing, the stock was at a 52-week high yesterday and some profit takers may be taking advantage of results baked into the stock price. The stock gained 7.1% over the past month.
- And despite holiday sales the coming quarter isn't the easiest one for owners of videogame makers, who face cannibalization from hardware sales, Cowen's Doug Creutz says: "We remain mindful that the November-January seasonal window has historically been a poor time to own the group, and do believe there is a possibility of a short-term pullback after the Star Wars launch."
- But even he goes on to say "However, with both Battlefield 5 and Titanfall 2 likely on the docket for FY17, as well as another potential Star Wars title, we believe the company can continue its robust growth trajectory."
- EA expects Battlefront to move 13M units in the rest of the fiscal year (until March), up from a previous forecast of 9M-10M.
- The stock's trading now at $72.27. Mizuho raised its price target to $84, from $75, implying 16.2% upside, and MKM raised its target to $84, from $82.
- Previously: EA -2.6% after solid fiscal Q2 beat, raised guidance (Oct. 29 2015)
Thu, Oct. 29, 4:13 PM
- Electronic Arts (NASDAQ:EA) jumped briefly but are now down 2.6% in postmarket trading following a solid beat in its fiscal second quarter during which it bumped its full-year guidance yet again.
- Net revenues for live services including FIFA, Madden NFL and Hockey Ultimate Team are up 64% Y/Y combined. For the trailing 12 months, non-GAAP net revenue hit $4.163B (a record $2.307B in digital).
- Expectations are high for the holiday quarter, which will feature Star Wars: Battlefront. The company raised guidance for non-GAAP net revenue of $1.775B (high of an expected $1.75B) and EPS of $1.75 vs. an expected $1.73.
- For the fiscal year, the company sees non-GAAP net revenues of $4.5B (vs. expected $4.54B), and EPS of $3.00 (higher than an expected $2.96).
- Conference call to come at 5 p.m. ET.
- Press release
Thu, Oct. 29, 4:04 PM
Tue, Oct. 27, 4:05 PM
- Electronic Arts (NASDAQ:EA) has picked up 1.6% today, and got close to another 52-week high, after Piper Jaffray reiterated its Buy rating ahead of the company's Thursday earnings report.
- Analyst Mike Olson maintained an $86 price target; shares have closed at $75.27, implying 14.3% upside.
- He's looking for "potential for upside to results driven by FIFA sales in Europe and growth of digital revenue." A tough comparison in NPD sales for September came due to FIFA results (FIFA 16 declined compared to FIFA 15 -- counting U.S. only). And NPD doesn't count titles bundled with hardware or full-game digital downloads, which presents some possible upside for FIFA Ultimate Team.
- Guidance could see a boost: "EA may slightly raise FY16 guidance, with comps easing in 2H2016 and the launch of Star Wars: Battlefront in November," he says.
Wed, Oct. 14, 9:15 PM
- Demand is still strong among teens for the newest generation of videogame consoles, Piper Jaffray says -- and that's good news for leading game makers like Activision Blizzard (ATVI +0.4%) and Electronic Arts (EA +3.1%).
- Uptake of the Xbox One (MSFT -0.5%) and PlayStation 4 (SNE -1.5%) consoles "is at the highest level we have seen, reinforcing our expectation for a much more rapid pace than prior-gen" consoles, says analyst Michael Olson, a "clear positive" for Activision, EA, Take-Two Interactive (TTWO +0.2%) and retailer GameStop (GME -1.1%).
- The firm's semiannual survey found 73% of videogame-playing teens own an Xbox One or PlayStation 4, or intend to get one -- up from 70% last spring and 67% last fall. Some 39% currently own one of the newer consoles, up from 37% in the spring and 26% last fall.
- "We believe the combination of next-gen console uptake and a robust lineup of AAA titles will lead to sustainable software growth through second-half 2015 and into 2016," Olson writes.
- Mobile players are stable, but the number who'll pay is rising as well. Some 24% of teens who play mobile games by makers like Glu Mobile (GLUU +1.2%) and King Digital (KING -0.4%) say they spend in-game money, the survey said, up from 21% in the spring.
Wed, Oct. 14, 4:14 PM
- Electronic Arts (NASDAQ:EA) moved up this afternoon to finish up 3.1% as MKM Partners upgraded to Buy on a look at the upcoming lineup and stronger margins.
- Analyst Eric Handler has an $82 price target; that's 16% upside from today's close.
- Handler's got a Buy rating even after the stock's doubling over the past year. He raised his outlook after a "record turnout" of 9M players for the beta of Star Wars: Battlefront, but there's a strong development slate ahead as well: a new Battlefield from Dice, Mass Effect: Andromeda, and Titanfall 2, to add on to the Star Wars content.
- Margin expansion "remains healthy," Handler says, and should keep growing to 71.5% from the prior 71%. He's raised EPS estimates for Q3 to $1.82, from $180, and Q4 estimates to $0.58, from $0.54.
Thu, Jul. 30, 4:28 PM
- Electronic Arts (NASDAQ:EA) is off 4% now in after-hours trade following a strong quarter where it raised full-year guidance and beat expectations on top and bottom lines despite revenues that slipped more than 10% from last year.
- Revenue breakout: Total non-GAAP net revenue of $693M was composed of digital net revenue of $532M (up 10.3%) and packaged goods and other revenue of $161M (down 45%). On a GAAP basis, digital net revenue of $623M and packaged goods and other revenue of $580M came to GAAP revenue of $1.2B, down about 1%.
- Monthly active users averaged more than 150M for the quarter. The company noted that during E3 week, EA titles earned 132 awards and trailers, gameplay and livestreams were viewed more than 53M times.
- The company guided for full fiscal year (ending March 31, 2016) non-GAAP net revenues of $4.45B and EPS of $2.85, up from $2.75. For its fiscal Q2, the company sees revenue of $1.075B (light of an expected $1.12B) and EPS of $0.40 vs. an expected $0.66.
- Conference call to come at 5 p.m. ET.
- Press Release
Thu, Jul. 30, 4:04 PM
Tue, Jul. 14, 5:33 PM
- Fresh off an announcement of its own streaming video service, Comcast (CMCSA -0.8%) is beginning a beta test for Xfinity Games, a streaming videogame service it's developing with Electronic Arts (EA -1.8%).
- Considering the payload of streaming a game, the service is focused on older and mobile-oriented versions of games, like FIFA 13, NBA Jam or Plants vs. Zombies -- which makes it more of a competitor with other streaming game offerings rather than with major consoles.
- The simpler nature of the games means it's not set for a specialized controller, so players control the games with mobile phones or tablets.
Thu, Jul. 9, 10:31 AM
- Electronic Arts (NASDAQ:EA) is up 2.2% and setting a new 52-week high, as Piper Jaffray raises its price target to $72.
- Shares closed yesterday at $69; currently they're trading at $70.50.
- Piper's reiterating its Overweight rating on the shares. On Tuesday, shares moved up on a UBS upgrade to Buy, where those analysts raised the target to $80 seeing "continued runway for outperformance."
- Previously: Electronic Arts names new mobile chief (Jul. 07 2015)
- Previously: Electronic Arts up 1.8% premarket on UBS upgrade to Buy (Jul. 07 2015)
Tue, Jul. 7, 4:40 PM
- Electronic Arts (NASDAQ:EA) says it has appointed Samantha Ryan head of EA Mobile.
- Ryan is a recent addition to the company, having joined just a few months ago. Previously she had served as senior VP of production and development at Warner Bros. Interactive.
- In its last earnings report (fiscal Q4), EA noted that mobile revenue set a new record, contributing $524 million for the fiscal year. Monthly active users for mobile titles averaged more than 165M in Q4.
- The company's shares rose 2.7% today and hit an all-time high heading into the close, following this morning's upgrade from UBS to Buy.
Tue, Jul. 7, 9:16 AM
- Electronic Arts (NASDAQ:EA) is up 1.8% premarket as UBS upgrades shares to Buy.
- The analysts set a price target of $80, raised from $65. Shares closed yesterday at $68.01.
- UBS has raised fiscal year estimates for the game maker, putting its non-GAAP revenues at $4.63B (up from $4.48B) and EPS to $3.01 (from $2.84). Consensus estimates for revenues are at $4.49B and for EPS of $2.86.
- UBS also expects adjusted fiscal 2016 EBITDA of $1.5B, up from $1.43B and vs. a consensus of $1.38B.
- The firm says there's "continued runway for outperformance" considering factors including a continuing shift to digital sales and a title slate that will get a boost from Star Wars: Battlefront.
Wed, Jun. 24, 9:54 AM
- Take-Two (TTWO +3.3%) and Electronic Arts (EA +2.4%) both rose this morning as Jefferies issued reports raising each firm to Buy, from Hold, with an eye toward the advancement of the new game console cycle.
- With around 48M-49M new-generation consoles in the wild at year's end, annual growth would be about 69%, and there might be 100M installed units by the end of 2017 -- leading to some sales capitalization from both firms off of fixed development costs.
- "EA looks well positioned against two multi-year tailwinds: faster than expected console sales and the transition to higher-margin digital revenue," Brian Pitz wrote. He raised EA's price target to $80, from $58. Shares are currently trading at $68.20.
- Brian Fitzgerald is looking for continued margin expansion at Take-Two and raised its target to $35 from $29. Shares are currently at $28.92.
Other News & PR