Can Electronic Arts (EA) Win Over Wall Street with its Q4 Numbers?

What's Happening With EA View more about EA >

Video game maker Electronic Arts (EA) is scheduled to report its fiscal fourth-quarter earnings after the market close May 7. Analysts forecast earnings of $0.96 per share on revenue of $1.2 billion. During the same period last year the company earned $1.28 on revenue of $1.58 billion and the stock is up 17.3% on the year.

Technical Analysis

EA stock was recently trading at $92.33 down $58.93 from its 12-month high and $18.42 above its 12-month low. InvestorsObserver’s Stock Score Report gives EA a 17 long-term technical score and a 32 short-term technical score. The stock has recent support above $80 and recent resistance below $105. Of the 23 analysts who cover the stock 15 rate it Strong Buy, 1 rate it Buy, 7 rate it Hold, 0 rate it Sell, and 0 rate it Strong Sell, EA gets a score of 41 from InvestorsObserver’s Stock Score Report.

Analysts' Thoughts

Electronic Arts (EA) stock is up sharply on the year after a big rally in January but shares have been stuck in a sideways trend over the last months. A red flag was seen in Activision’s (ATVI) quarterly report and weak guidance which pulled both stocks lower. Activision noted increased competition to its “Overwatch”  game, which likely referred to EA’s “Apex Legends” game which launched in February. Both companies are also dealing with stiff competition from the highly popular “Fortnite” which has amassed a large and dedicated user base around the globe. The street expects a decent report with a whisper number of $1.02 for the quarter, but Wall Street will pay close attention to the company’s guidance which will likely drive the stock immediately after the report. The stock is reasonably priced at 20 times earnings and analysts have an average price target of $108.43 on the stock.

EA
About Electronic Arts Inc.

Electronic Arts Inc is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile. The firm owns number of large franchises, including Madden, FIFA, Battlefield, Mass Effect, Dragon's Age, and Need for Speed. EA recently signed a 10-year contract with Disney that granted EA the exclusive rights to develop Star Wars games for core gamers across all platforms.

  • Last Price:
    $87.50
  • Previous Close:
    $89.19
  • Change:
    $-1.69 (-1.89%)
  • Open:
    $89.35
  • Volume:
    2,901,257
  • Average Volume (100 Day):
    4,339,599
  • Market Capitalization:
    $25.9 B
  • Day's Range:
    $87.47 - $89.41
  • Dividend Yield:
    0.00%
  • 52-week Range:
    $150 - $73.91
  • P-E:
    26.80
  • EPS:
    $3.33
  • Earnings Date:
    7/30/19
  • Ex Dividend Date:
    N/A
  • Sector:
    Technology
  • Industry:
    Electronic Gaming & Multimedia
  • Analyst Average Recommendation:
    Moderate Buy

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