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Shares of videogame developer Electronic Arts (NASDAQ:EA) rose nearly 1.8% on Thursday as research firm M Science raised its second-quarter estimates, citing the performance of its recently released soccer game, FC 2024.
M Science said that FC 24 performed well in September, despite being launched in the last week of the month. The research firm added that any normalization in bookings in its popular Sims game, as well as the strength from the aforementioned soccer game, should offset the "ongoing headwinds" related to its Apex Legends game.
A consensus of analysts expect EA (EA) to earn $1.26 per share on $1.77B in revenue during the upcoming quarter.
On Tuesday, Bank of America upgraded the video game maker, stating that the discount in its stock compared to its peers is "unwarranted."
Analyst Omar Dessouky said that the risk in the stock is skewed attractively as its relative valuation is near a five-year low and early statistics from the launch of FC 2024 suggest there could be "upside" to Wall Street estimates and guidance. Additionally, fiscal 2025 and beyond could see a number of upward revisions, as EA (EA) benefits from above trend growth in the PC and console gaming markets, Dessouky added.
EA launched EA Sports FC 24 in late September, its first soccer game since breaking up with FIFA after nearly 30 years.
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