Electronic Arts (ERTS) has once again disappointed investors. EA downgraded profit expectations from 79 cents to a range of 40 to 55 cents per share. Electronic Arts had more excuses for why the company’s revenue was lagging. The company blamed the poor economy, overseas weakness and consumers changing buying habits.
I don’t believe that is the case. Wedbush Morgan analyst Michael Pachter said it best. Electronic Arts simply “did not have the products that people wanted” and should be acknowledging that rather than “blaming everything on the environment.” EA looks tempting at $16.74 but after having fallen into that value trap before; I will pass.
Alcoa Swings & Misses
Alcoa (NYSE:AA) reported a profit of 1 cent per share disappointing the street which had expected the aluminum maker to report 6 cents a share. Revenue came in higher than expected at 5.42 billion but the increase was offset by higher operating costs. Alcoa’s stock dropped 5.4% down to $16.51 in after hours trading.