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Electronic Arts Inc. (EA)

  • 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, 4:28 PM | Comment!
  • Thu, Jul. 30, 4:04 PM
    • Electronic Arts (NASDAQ:EA): Q1 EPS of $0.15 beats by $0.12.
    • Revenue of $693M (-10.6% Y/Y) beats by $40.96M.
    • Shares +3%.
    • Press Release
    | Thu, Jul. 30, 4:04 PM | Comment!
  • 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.
    | Tue, Jul. 14, 5:33 PM | 3 Comments
  • Thu, Jul. 9, 10:31 AM
    | Thu, Jul. 9, 10:31 AM | Comment!
  • 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, 4:40 PM | Comment!
  • 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.
    | Tue, Jul. 7, 9:16 AM | Comment!
  • 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.
    | Wed, Jun. 24, 9:54 AM | 1 Comment
  • Tue, May 5, 4:22 PM
    • Electronic Arts (NASDAQ:EA) is up 4.4% after hours, following a fiscal Q4 report where it beat expectations for revenue and earnings and finished a record year for net revenue and operating cash flow.
    • EA says it reached a three-year goal to double operating margins to 20% a year ahead of schedule.
    • Non-GAAP revenue by segment: Digital net revenue, $602M (up 9.5%); Packaged Goods and Other net revenue, $294M (down 19.2%).
    • EA noted that during its fiscal year it was the top publisher on PlayStation 4 and Xbox One consoles, on the back of Battlefield: Hardline (30M game sessions in Q4), Dragon Age: Inquisition (200M hours played in total) and other games including Madden NFL 15 and FIFA 15.
    • The company authorized a new $1B repurchase program for the next two years.
    • Conference call at 5 p.m. ET.
    • Press Release
    | Tue, May 5, 4:22 PM | Comment!
  • Tue, May 5, 4:06 PM
    • Electronic Arts (NASDAQ:EA): FQ4 EPS of $0.39 beats by $0.14.
    • Revenue of $896M (-2.0% Y/Y) beats by $45.77M.
    • Shares +4%.
    • Press Release
    | Tue, May 5, 4:06 PM | Comment!
  • Fri, Mar. 13, 5:15 PM
    • NPD estimates U.S. physical retail game sales rose 7% Y/Y in February to $338.9M, up from January's 5% growth and better than expected. Hardware sales rose 10% to $378.2M, as next-gen console demand remains healthy. Superdata Research estimates digital game revenue rose just 2% to $995M, thanks to weak mobile and social game sales.
    • Nintendo (OTCPK:NTDOY) had a good month: The recently-refreshed 3DS XL handheld was February's top-selling console - Ninetendo says 394K 3DS units were sold - and The Legend of Zelda: Majora's Mask 3D (launched on Feb. 13) topped NPD's game rankings.
    • Take-Two (NASDAQ:TTWO) also did well: Evolve (launched on Feb. 10) was #2 on NPD's list, GTA V came in at #5 (down from January's #3) ahead of its March 24 PC launch, and NBA 2K15 was at #6 (down from #5). Take-Two recently said it was "very pleased" with Evolve's launch.
    • Activision's (NASDAQ:ATVI) Call of Duty: Advanced Warfare fell two spots to #4, while Destiny (#9 last month) fell out of the top-10. Electronic Arts' (NASDAQ:EA) Madden NFL 15 and FIFA 15 also dropped out.
    • Piper observes Take-Two and Activision's NPD sales were respectively up 72% and 16% Y/Y in February, and that EA's were down 32% over the first two months of 2015. It maintains Overweight ratings on all 3 firms.
    • Take-Two rose 3.9% in regular trading thanks to the numbers. GameStop (NYSE:GME) also got a lift, rising 3.5%. Activision rose 0.9% and EA rose 0.4%.
    | Fri, Mar. 13, 5:15 PM | 5 Comments
  • Tue, Mar. 10, 10:41 AM
    • With shares having closed yesterday not far from a 52-week high of $58.87 (set on Feb. 26), Needham has downgraded Electronic Arts (NASDAQ:EA) to Hold.
    • The gaming giant remains up 13% from where it traded prior to its Jan. 27 FQ3 beat, which was driven by surging digital revenue and cost controls. EA currently goes for ~15x trailing free cash flow.
    | Tue, Mar. 10, 10:41 AM | Comment!
  • Wed, Jan. 28, 12:44 PM
    | Wed, Jan. 28, 12:44 PM | 1 Comment
  • Tue, Jan. 27, 6:28 PM
    • Electronic Arts (NASDAQ:EA) is guiding for FQ4 revenue of $830M and EPS of $0.22, below a consensus of $911.6M and $0.26. However, the huge beat posted for EA's seasonally biggest quarter is taking priority.
    • EA's packaged goods/other revenue (traditional game sales) fell 31% Y/Y in FQ3 to $755M. But full game download revenue rose 22% to $140M, extra content revenue 47% to $314M, and subscriptions/ad/other revenue 52% to $100M. Mobile revenue grew 13% to $139M.
    • Also boosting EPS: Sales/marketing spend fell 21% to $169M. R&D spend rose 3% to $283M. $97M was spent on buybacks.
    • Xbox One/PS4 revenue rose 51% to $593M. Xbox 360/PS3 revenue fell 42% to $412M. International markets accounted for 58% of sales.
    • FQ3 results, PR
    | Tue, Jan. 27, 6:28 PM | Comment!
  • Fri, Jan. 16, 10:35 AM
    • Activision's (ATVI +6.3%) Call of Duty: Advanced Warfare topped NPD's U.S. physical retail game sale rankings for the second month in a row in December. Destiny, which Activision hopes will be its third $1B+ franchise, was #9.
    • In a PR, Activision says Advanced Warfare was the "top-selling console game of 2014 globally," and that Destiny was the #2 2014 U.S. console game in terms of revenue. Skylanders was the top kids video game franchise globally (inc. toys/accessories sales), with a 30% sales edge over its biggest rival (presumably Disney's Infinity).
    • Electronic Arts' (EA - unchanged) Madden NFL 2015 rose a spot to #3, and FIFA 15 returned to the top-10 (at #10). Take-Two's (TTWO +1.8%) Grand Theft Auto V was at #2 for another month, continuing to get a lift from its next-gen console and PC launches. NBA 2K15 rose three spots to #5.
    • NPD estimates total U.S. physical retail game sales fell 2% Y/Y to $1.25B. Hardware sales, facing tougher comps (given next-gen consoles launched in Nov. 2013), fell 4% to $1.31B, with the Xbox One outselling the PS4. Next-gen consoles are performing 65% better than prior-gen consoles had over their first 14 months. GameStop (GME +3%), just three days removed from reporting better-than-expected holiday sales, is reacting favorably to the numbers.
    • Superdata Research estimates U.S. digital game spend rose 11% Y/Y in December to $1.2B. Mobile game sales (35% of 2014 sales) rose 17%, and digital console game sales (8% of 2014 sales) 10%.
    • EA reports on Jan. 27, Take-Two on Feb. 3, and Activision on Feb. 5.
    • Previously: NPD's November data
    • Update (2:15PM): EA is now up 1.8%, aided by a 0.8% increase for the Nasdaq. Activision is now up 9.2%, Take-Two 4.2%, and GameStop 4.5%.
    | Fri, Jan. 16, 10:35 AM | Comment!
  • Dec. 12, 2014, 10:39 AM
    • Though Activision's (ATVI -1.5%) Call of Duty: Advanced Warfare was (as expected) #1 in NPD's November U.S. physical retail game sale rankings, Call of Duty franchise sales were down 27% Y/Y and Activision's total sales down 22%.
    • That has led Piper to slash its Activision target by $3 to $24. "Strength in the Blizzard side of the business (WoW & HearthStone) should allow for an in-line Q4, but we are slightly lowering our estimates to now be in-line with company guidance."
    • Take-Two (TTWO +3.3%), meanwhile, has rallied towards its 52-week high after Grand Theft Auto V (recently become available on the Xbox One, PS4, and PCs) ranked #2. NBA 2K15 was #8, down one spot from October. Borderlands: The Pre-Sequel fell out of the top-10.
    • Electronic Arts' (EA +0.5%) Madden NFL 15 rose four spots to #4, but FIFA 15 fell out of the top-10. BofA/Merrill has hiked its targets (I, II) for both EA and Take-Two following NPD's numbers: It's optimistic EA can continue growing margins thanks to growing digital sales and cost controls, and argues Take-Two deserves a multiple similar to EA and Activision's.
    • NPD estimates total U.S. physical game sales fell 2% Y/Y in November to $1.09B, a much smaller drop than October's 27%. With next-gen consoles having launched a year ago, hardware sales fell an estimated 23% to $1.01B, with the Xbox One (1.2M sales) outselling the PS4 following a $50 early-November price cut.
    • Wedbush's Michael Pachter thinks game sales growth may have been positive after accounting for downloads and the frequent bundling of games with consoles. Meanwhile, Superdata Research estimates total digital game spend rose 23% Y/Y during the Thanksgiving period.
    | Dec. 12, 2014, 10:39 AM | 3 Comments
  • Nov. 18, 2014, 12:47 PM
    • Citing the company's digital revenue growth and cost-cutting efforts, Barclays' Christopher Merwin has launched coverage on Electronic Arts (NASDAQ:EA) with an Overweight rating and $48 target.
    • Merwin: "EA has been proactive in adding new, high-margin digital revenue streams, while simultaneously cutting costs and rationalizing its product pipeline to drive margin expansion.
    • He also argues digital content such as the Ultimate Team features for FIFA and Madden titles is "helping EA to increase the engagement levels of its player-base, a trend that should improve revenue visibility for EA's core titles and eventually transform the console-game publishing business into a higher multiple subscription model with less volatility."
    • Shares have made new highs, and are up 86% YTD.
    | Nov. 18, 2014, 12:47 PM | Comment!
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Company Description
Electronic Arts Inc develops, markets, publishes and distributes video game software and content that can be played by consumers on various platforms.