Videogame Industry
Earnings Preview: Electronic Arts
Auteur : Forbes
Du : 01/11/2005
Video-game maker Electronic Arts Inc. reports earnings for the fiscal second quarter after the closing bell on Tuesday, Nov. 1. The following is a summary of key developments and analyst opinion related to the period.
EXPECTATIONS: In July, Electronic Arts said it expects quarterly income to range from break-even to 5 cents per share on revenue of $600 million to $630 million. Analysts polled by Thomson Financial are looking for income of 4 cents per share and $628.7 million in sales.
ANALYST TAKE: Analysts say Electronic Arts is poised to benefit from the upcoming wave of new video game consoles from Sony, Nintendo and Microsoft, but that also means the company may be hurt by a potential slowdown in demand for current titles.
QUARTER DEVELOPMENTS: There have been no major developments aside from anticipation over the next generation of consoles, expected to be released during the critical holiday shopping season. Electronic Arts also renewed a multiyear license deal with football icon John Madden to continue using his character for the popular "Madden NFL" football games.
COMPETITORS: Electronic Arts' sports video-game franchise has helped it compete with rivals Take-Two Interactive Software Inc., Activision Inc. and THQ Inc.
STOCK PERFORMANCE: Shares of Electronic Arts were nearly unchanged in the second quarter, but are down 13.1 percent this year. The stock topped an all-time high of $70 in early March, but a reduced outlook sent shares sliding almost 17 percent later that month.
EXPECTATIONS: In July, Electronic Arts said it expects quarterly income to range from break-even to 5 cents per share on revenue of $600 million to $630 million. Analysts polled by Thomson Financial are looking for income of 4 cents per share and $628.7 million in sales.
ANALYST TAKE: Analysts say Electronic Arts is poised to benefit from the upcoming wave of new video game consoles from Sony, Nintendo and Microsoft, but that also means the company may be hurt by a potential slowdown in demand for current titles.
QUARTER DEVELOPMENTS: There have been no major developments aside from anticipation over the next generation of consoles, expected to be released during the critical holiday shopping season. Electronic Arts also renewed a multiyear license deal with football icon John Madden to continue using his character for the popular "Madden NFL" football games.
COMPETITORS: Electronic Arts' sports video-game franchise has helped it compete with rivals Take-Two Interactive Software Inc., Activision Inc. and THQ Inc.
STOCK PERFORMANCE: Shares of Electronic Arts were nearly unchanged in the second quarter, but are down 13.1 percent this year. The stock topped an all-time high of $70 in early March, but a reduced outlook sent shares sliding almost 17 percent later that month.