Earnings on Watch: Electronic Arts Inc. (EA)

Company Profile:

Electronic Arts Inc. develops, markets, publishes, and distributes game software content and online services for video game consoles, Internet-connected consoles, personal computers, mobile phones, and tablets worldwide. The company operates through EA Studios, EA Mobile, and Maxis divisions. It develops and publishes digital interactive entertainment games primarily under the The Sims, Madden NFL, EA SPORTS FIFA, Battlefield, FIFA Soccer, Need for Speed, Dragon Age, and Plants vs. Zombies brand names. The company also offers casual games, such as cards, puzzles, and word games through pogo.com and on other platforms; and sells digital content. The company was founded in 1982 and is headquartered in Redwood City, California.

Recent News:

Electronic Arts Inc. is likely to report earnings per share of $0.34 for its most recent fiscal quarter. The company’s quarterly results are due to release on or around 2016-01-26.

During the financial period ended on 2015-09-30, the Electronic Arts Inc. reported earnings at $0.52 per share. Non-GAAP net revenue of $1.146 billion was above guidance of $1.075 billion. Diluted non-GAAP EPS of $0.65 was above guidance of $0.40.

In fiscal year 2015, EA posted GAAP net revenue of $4.5 billion. Headquartered in Redwood City, California, EA is recognized for a portfolio of critically acclaimed, high-quality blockbuster brands such as The Sims™, Madden NFL, EA SPORTS™ FIFA, Battlefield™, Dragon Age™ and Plants vs. Zombies™.

On Noverber 24, 2015, players can collect, fight and dominate in Star Wars™: Galaxy of Heroes, from Electronic Arts Inc. (EA) and Lucasfilm Ltd.

 

Fundamental Analysis:

Ninestocks analyzes several different financial aspects: Growth, Profitability, solvency and efficiency.

Growth – Measures the growth of both the company’s income statement and cash flow.

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Profitability – Measures the historical price movement of the stock.

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Solvency – Measures the solvency of the company based on several ratios.

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Efficiency – Measures the strength and historic growth of a company’s return on invested capital.

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Conclusion:

EA’s strengths can be seen in its strong growth, robust profitability, great solvency and better efficiency. Its revenue have increased over several years. Technical indicators signal the bullish signs, as there is a bullish cross in MACD and Stochastic Oscillator. RSI is increasing to 51.28. The current P/E ratio indicates it is undervalued compared to the average P/E ratio of the industry. We rate Electronic Arts Inc. (EA) a Strong BUY.

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