Earnings Preview: Electronic Arts
NEW YORK (AP) - Video game publisher Electronic Arts Inc.
reports earnings for its fiscal second quarter, which ended in
September, on Monday after the market closes. The following is a
summary of key developments and analyst opinion related to the
period.
OVERVIEW: The video game industry has had a tough time for much
of this year after capping 2008 with record sales. The recession
has forced customers to cut back on spending, and the lack of big
hit titles relative to last year has made year-over-year
comparisons difficult.
Electronic Arts, however, could beat Wall Street's expectations
for the quarter, according to some analysts, driven by sales of
games such as ``The Beatles: Rock Band'' and ``Madden NFL 10.''
NASDAQ:ERTS Updated: 15:59 ET 17.30 -0.13 |
BY THE NUMBERS: Analysts, on average, are expecting a profit of
7 cents per share on sales of $1.12 billion, according to a poll by
Thomson Reuters.
EA does not give quarterly guidance.
ANALYST TAKE: ``Recent industry weakness will likely cause the
company to lower its full-year industry growth expectations to
negative 'mid single digits,' from 'flat' previously,'' wrote
Wedbush Morgan analyst Michael Pachter in a note to investors. ``In
addition, we believe the company may take a more proactive role in
additional cost cuts and may announce additional restructuring
initiatives.''
Pachter, who rates EA ``Outperform,'' expects the company to
report second-quarter's results ``well above'' average analyst
estimates.
WHAT'S AHEAD: EA's fiscal third quarter, which closes the
calendar year, is expected to bring in a big chunk of the company's
2009 profit and revenue, since the video game industry makes a
great deal of its money during the holiday shopping season.
STOCK PERFORMANCE: Shares of the Redwood City, Calif.-based
company fell 12 percent during the quarter to close at $19.05 at
the end of September.
11/06/09 15:56
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