Electronic Arts (EA)

Re: Electronic Arts (EA)

Postby winston » Wed May 08, 2019 2:33 pm

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EA revenue beats estimates on 'Apex Legends' boost, shares jump

May 7 (Reuters) - Electronic Arts Inc posted better-than-expected quarterly revenue on Tuesday, riding on the popularity of its latest battle royale sensation, "Apex Legends", and other games, sending its shares up 8 percent in extended trading.

EA launched "Apex Legends" and "Battlefield V Firestorm" during the quarter to cash in on the popularity of battle royale games such as "PUBG" and Epic Games' "Fortnite".

EA's battle royale game had 50 million sign ups in just a month, suggesting that the company could withstand competition from "Fortnite", a free-to-play game where up to 100 players fight to be the last person standing.

According to Nielsen-owned gaming research firm SuperData, Apex Legends raked in $92 million from in-game spending across platforms in the month of February, having "the best launch month of any free-to-play game in history".

On an adjusted basis, EA's fourth-quarter revenue was $1.36 billion, beating analysts' average estimates of $1.20 billion, according to IBES data from Refinitiv.

However, EA forecast first-quarter adjusted revenue of $690 million, well below analysts' estimates of $807.8 million.

Its full-year adjusted revenue forecast of $5.10 billion was also below estimates of $5.16 billion.

Earlier on Tuesday, EA also said it expanded its EA Access subscription service to Sony's PlayStation 4, starting July.

The service, which has been available on Microsoft's Xbox and PC via Origin since 2014, is priced at $4.99 per month and $29.99 per year.

The company's net income fell to $209 million, or 69 cents per share, in the fourth quarter ended March 31 from $607 million, or $1.95 per share, a year earlier.

Source: Reuters

https://finance.yahoo.com/news/ea-reven ... 17418.html
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Re: Electronic Arts (EA)

Postby winston » Wed May 08, 2019 10:52 pm

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EA earnings show sports titles are ‘more valuable than ever,’ says analyst

By Emily Bary

Apex Legends is the fastest growing franchise in EA’s history, the company said Tuesday.

Electronic Arts Inc. shares gained in Wednesday trading after the company showed off strong performances from its sports and “Apex Legends” titles, while also issuing an upbeat outlook.

EA saw better-than-expected revenue contributions from its sports titles in the quarter, as “Madden” for NFL play and “FIFA” for global soccer play both looked strong.

A key question going into EA’s report concerned the company’s “Apex Legends” title, which soared in popularity after the February launch of the hero-shooter battle royale game.

The game is free to play but charges users for upgrades to the look of their character. Investors weren’t sure prior to the report how that early enthusiasm was translating into revenue or whether the momentum would continue.

EA expects $300 million to $400 million in net bookings for the title in the fiscal year that ends next March, though that projection doesn’t take into account potential contributions from a mobile version of the game or a version for the Chinese market.

He rates the stock at outperform but lowered his price target by a buck, to $119.

Wedbush’s Michael Pachter, rates the stock at outperform with a $122 target.

Jefferies analyst Tim O’Shea, has a hold rating on shares but lifted his target to $100 from $90.

While bulls may view EA’s “Apex” outlook as conservative, KeyBanc analyst Evan Wingren argued that bears might find the forecast “aggressive,” given that the fiscal year just began and “Apex’s” first Battle Pass drew “mixed feedback.”

Wingren also doesn’t expect that mobile expansion will make any meaningful contribution in the current fiscal year. He rates the stock at sector weight.

Source: Market Watch

https://www.marketwatch.com/story/ea-ea ... =rss&rss=1
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Re: Electronic Arts (EA)

Postby winston » Wed May 15, 2019 10:34 pm

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Why Investors Loved Electronic Arts' Fourth Quarter

by John Ballard

EA generates more than $1 billion of free cash flow to spend on game development every year.

EA reported adjusted revenue of $1.36 billion for the quarter, higher than management's guidance of $1.17 billion. The beat was partly driven by Apex Legends, with the balance credited to EA Sports titles.

Live service revenue, which includes in-game spending for add-on content, increased 24% year over year to $845 million, primarily driven by Apex Legends.

Apex has reached more than 50 million players since its release, of whom 30% are new to EA's games.

Management expects Apex to generate between $300 million to $400 million in adjusted revenue in fiscal 2020, or about 7% of total adjusted revenue.

In addition to a potential release in China, EA is self-publishing Apex Legends in South Korea.

PE 20


Source: The Motley Fool

https://finance.yahoo.com/news/why-inve ... 00735.html
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Re: Electronic Arts (EA)

Postby winston » Wed May 15, 2019 10:44 pm

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What Electronic Arts Wants You to Know

by Demitrios Kalogeropoulos

We significantly outperformed our expectations in Q4. This was, of course, largely driven by Apex Legends, but sports were also stronger than we had anticipated. Anthem underperformed our expectations.

Mobile delivered net bookings of $135 million, down 23% year on year, with declines from aging titles across our portfolio not offset by growth in our new title, Command & Conquer: Rivals.


Star Wars Jedi: Fallen Order, should sell between 6 million and 8 million units.

Need for Speed at around 4 million.

Live services growth could accelerate to as much as 15%.

Apex: Launch in markets like China and Korea and the eventual addition of a mobile gaming component.


Source: The Motley Fool

https://finance.yahoo.com/news/electron ... 00277.html
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Re: Electronic Arts (EA)

Postby winston » Tue May 21, 2019 7:31 pm

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Electronic Arts' Game Release Strategy Is Evolving

The video-game industry is adjusting to new consumer demands, and EA wants to lead the way.

by Nicholas Rossolillo

Live services from titles like Apex Legends as well as sports installments like FIFA are expected to be the leading edge of the company in the coming year, increasing segment sales by 10% to 15%.

Total net revenue is anticipated to rise 9% over last year and adjusted earnings to increase 7%.


Source: Motley Fool

https://www.fool.com/investing/2019/05/ ... lving.aspx
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Re: Electronic Arts (EA)

Postby winston » Tue May 21, 2019 7:36 pm

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Wedbush adds EA to Best Ideas list

May 17, 2019

By Brandy Betz

Wedbush adds Electronic Arts (NASDAQ:EA) on the "outstanding" game lineup for this year that should deliver material upside to the FY20 guidance for net bookings and EPS.

Key quote: "We expect a string of near-term catalysts, including updates on Apex MAUs, game reveals at the E3 Expo in June, greater detail on the market expansion potential for services like Google Stadia, and continuing growth of EA’s sports business."

Price target: $122.

Source: Seeking Alpha

https://seekingalpha.com/news/3464979-w ... ideas-list
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Re: Electronic Arts (EA)

Postby winston » Wed May 29, 2019 10:18 am

EA Is Becoming The Next Netflix

by Damon Verial

Summary

EA's EPS growth has been mocked recently, yet analyst expectations of EA's earnings remain highly bullish.

Many consider EA overpriced, but the company's transition to a games as a service model and the model's previous success are likely being priced into the stock.

My discounted cash flow valuation for EA has been consistently rising, but the stock should trend sideways without significant changes to its earnings growth.

The subscription service offered by EA, EA Access, is much like Netflix’s offer: at $3 per month, you can try out new games without having to shell out the $50 to $100 at which they usually retail.

Games are no longer investments, and the timing is correct, considering that gamers are hitting their 30s;

EA Access gives busy adult gamers access to variety and the ability to “rent” games prior to buying them – quite nice considering these gamers lost that ability with the demise of Blockbuster.


Source: Seeking Alpha

https://seekingalpha.com/article/426677 ... xt-netflix
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Re: Electronic Arts (EA)

Postby winston » Fri May 31, 2019 9:20 am

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Electronic Arts: I'm Staying Long

Summary

Electronic Arts has seen significant growth in live services this fiscal year.

While Ubisoft may be getting ready to compete with Electronic Arts on subscription services, I remain optimistic on the growth prospects for this company.

Should we see investor confidence rebound due to renewed growth in the stock, it is quite plausible that the P/E ratio would rebound to the 35x range in the near term - a level that we saw near the end of 2018.

Holding EPS constant, this would result in a price near the $120 range (35*3.362 = 117.67).

The Sims 4 saw active players in FY19 increase by 35% year over year, while the launch of the Firestorm battle royale in Battlefield V marked the biggest Battlefield live service event to date.


Source: Seeking Alpha

https://seekingalpha.com/article/426741 ... aying-long
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Re: Electronic Arts (EA)

Postby winston » Thu Jun 06, 2019 10:17 pm

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Nomura starts EA at Buy

By Jason Aycock

Electronic Arts (NASDAQ:EA) is up 0.8% premarket as Nomura Instinet launches coverage at Buy, joining a mostly bullish outlook on the Street.

The firm set its price target to $120, implying 26% upside.

Source: Seeking Alpha

https://seekingalpha.com/news/3469517-n ... on-neutral
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Re: Electronic Arts (EA)

Postby winston » Sat Jun 08, 2019 4:59 am

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Electronic Arts: Tencent To The Rescue

Summary

Since its strong launch, Apex Legends has performed below expectations.

EA may turn things around for Apex whenever it is introduced in China with the help of Tencent.

EA remains a high-quality pick on attractive valuations.

Apex streaming on Twitch has significantly decreased and this resulted in players losing interest in the new game at a rapid rate.

Twitch viewership rate has been down significantly from the launch week as almost 90% of the interest is gone now.


The biggest risk that I can think of is Apex turning out to be a huge failure after it has been introduced in China, or even worse, it not being introduced in China any time soon.

I feel that the future performance of EA stock is now closely linked to the performance of Apex Legends and things are not looking good at the moment. All eyes should be on China.


Source: Seeking Alpha

https://seekingalpha.com/article/426915 ... escue#alt2
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