Electronic Arts Results Top Estimates; Q2 Guidance Weak, Lifts FY Expectations

Electronic Arts (NASDAQ:EA) traded down 0.06% during trading on Monday, hitting $72.14. 1,064,016 shares of the company were exchanged. Electronic Arts has a 12 month low of $71.03 and a 12 month high of $72.14. The 50-day moving average is $65.95 and the 200 day moving average is recorded at $58.45. The company has a market cap of $22,408 million.

Electronic Arts Inc. raised its guidance for its recently started fiscal year as the company turned in a better-than-expected performance for the quarter ended in June.

Adjusted earnings, which also exclude certain one-time items, were 15 cents a share, topping the company’s forecast for break-even results. The business earned $693 million during the quarter, compared to analysts’ expectations of $650.57 million. The firm’s quarterly revenue was down 2.0% compared to the same quarter previous year. Earnings per share were $0.15. Earlier, it expected earnings of $2.75 per share and revenues of $4.40 billion. Benchmark Co. reissued a “buy” rating on shares of Electronic Arts in a research note on Tuesday. Brean Capital reiterated a “buy” rating and set a $75.00 price target on shares of Electronic Arts in a research report on Friday, July 17th. S&P 500 has rallied 6.25% during the last 52-weeks.

Out of 18 analysts covering Electronic Arts, 15 rate it a Buy, 7 indicate a Hold while 0 suggest a Sell. The report included, nevertheless, that “much of this is priced into the stock.”, the company’s analyst commented. Electronic Arts has an average rating of “Buy” and a consensus target price of $71.64. Toledano offered 8,000 shares of Digital Arts stock in a transaction dated Monday, July 20th. The stock was sold at an average cost of $74.42, for a total value of $595,360.00. The transaction was disclosed in a document filed with the SEC, which is available through the SEC website.

In related news, CFO Blake J. Jorgensen marketed 3,909 shares of the company’s stock in a trade on Wednesday, July 1st. The stock is more fairly valued in the $60 range (or 20 to 21 times fiscal 2016 estimates of $2.86). The disclosure for this sale can be found here.

Electronic Arts Inc is a game software content and services provider. (EA) develops, markets, publishes and distributes game software content and online services for video game consoles, internet-connected consoles, personal computers, mobile phones and tablets worldwide. It also provides game software-related services. The Company’s portfolio of brands includes wholly owned brands, such as Battlefield, Mass Effect, Need for Speed, The Sims, Bejeweled, and Plants v. Zombies. The Company is structured around three offices: EA Maxis Studios and EA Cell. The Maxis department creates services which engage participant ingenuity, and associated content and games.