Electronic Arts | $EA Stock | Shares Jump On Q3 Earnings Report

Electronic Arts

Electronic Arts Inc. (NASDAQ: EA)

On Tuesday January 30, 2018, the $36 billion dollar gaming company, Electronic Arts Incorporated, reported their fiscal third quarter results after the market closed for trading. The company reported a loss but the results beat Wall Street’s expectations.

Surprisingly, the average estimate was for $2.18 per share and they reported $2.22 per share. This positive earnings number only comes after adjustments for non-recurring costs and pre-tax expenses.

This all came on a paper loss of $186 million dollars in that third quarter. Revenue was a whopping 1.16 billion dollars. Shares which close the session up $1.05 at $118.70 shot up 7.3% in the aftermarket session closing at $127.36.

Analysts Actions

It seems a few of the Electronic Arts market analysts had things pegged just right for the earnings report. As recently as January 18th, Bernstein, a well-known Wall Street analyst firm, initiated their coverage of Electronic Arts with an outperform rating. Subsequent to that, Stifel, another well-known and respected Wall Street analyst firm, reiterating their buy rating on Electronic Arts.


Company Comments

Chief Executive Officer Andrew Wilson had this to say on the conference call:

“Players enjoyed hundreds of millions of hours in our games across console, mobile and PC during the holiday quarter, and we’re thrilled to see our titles driving excitement for more fans around the world. We’re expanding the reach of our top franchises across more geographies, our competitions are growing in participation and viewership, and we’re continuing to grow our network with more amazing games and content coming this quarter and beyond.”

And Chief Financial Officer Blake Jorgensen added,

“Our diversity in portfolio, platforms, geographies, and business models is the foundation of a robust business that enables us to deliver dependable cash flow. Through the fourth quarter and fiscal 2019, we’ll be launching games across five different genres, on three different platforms, and to players around the world. We expect growth in full-game downloads, subscriptions, extra content, and in our mobile business.”

Electronic Arts Charts

Electronic Arts

The above price chart shows the intraday action on Tuesday on the left and the aftermarket session on the right. Note how shares shot up as soon as the earnings were announced they formed a decent face and are poised to open much higher on Tuesday morning.

Electronic Arts

The above price chart shows electronic cards on the daily price history going back until October of 2017.  It is easy to see how the shares have been in a decent uptrend as recent as December through today. The green oval area highlighted in the upper right is where shares will be gapping up on Tuesday morning from the earnings report.

Company Profile

Electronic Arts Inc. develops, markets, publishes, and distributes games, content, and services for game consoles, personal computers, mobile phones, and tablets worldwide.

It develops and publishes games primarily under the Battlefield, Mass Effect, Need for Speed, The Sims, and Plants v. Zombies brands; and license games from others, such as FIFA, Madden NFL, and Star Wars, as well as publishes and distributes games developed by third parties.

The company markets and sells its games and services through digital distribution channels, as well as through retail channels, such as mass market retailers, electronics specialty stores, and game software specialty stores. Electronic Arts Inc. was founded in 1982 and is headquartered in Redwood City, California.– YahooFinance