Game reboots, key to future growth as EA posts record revenue

(Reuters) – Wall Street analysts expect Electronic Arts Inc to post record quarterly revenue on Tuesday, as gamers stranded at home due to new pandemic-induced restrictions boost demand for its sports titles “Madden NFL 21” and “FIFA 21” holiday shopping season.

Investors will also be looking for details on the new version of its first-person shooter “Battlefield” and the racing title “Need For Speed”. Delays in “FIFA” and “Madden NFL 21” updates had hurt the company’s sales last year.

“EA intends to launch 6 next-gen games in FY2022, with a new Battlefield game that should anchor a more robust CY2021 / FY2022 slate,” Stifel analyst Drew Crum said, adding that this year the company had not had a single share. Release.

THE CONTEXT

EA and rivals Activision Blizzard Inc and Take-Two Interactive Software Inc have benefited from a surge in video game sales during the pandemic.

But in the face of fierce competition, publishers must continue to update their best-selling titles to attract new players and retain old ones. EA’s quarterly results will offer a clue as to how its games have stood up to popular titles such as Activision’s “Call of Duty: Black Ops: Cold War” and Take Two’s “NBA 2K21”.

For a chart on Wall Street, EA’s revenue is expected to hit an all-time high in Q3:

THE FUNDAMENTALS

* The Redwood City, Calif., Based company is expected to report a 20.7% increase in revenue to $ 2.387 billion from $ 1.98 billion a year ago, according to the average estimate of 25 analysts, based on data from Refinitiv.

* The average analyst estimate for Electronic Arts is for earnings of $ 2.96 per share. For the same quarter of last year, the company reported earnings of $ 2.52 per share.

STREET MURAL FEELING

* The current average analyst rating for the stock is “buy” and the recommendation breakdown is 20 “strong buy” or “buy”, 13 “hold” and no “sell” or “strong sell”.

* Analysts’ average earnings estimate has fallen about 32% in the past three months.

* Wall Street’s 12-month median price target for Electronic Arts Inc is $ 150, about 4.7% above its last closing price of $ 143.01.

For a chart on video game publisher shares have increased over the past year (EA / TTWO / ATVI):

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Wall Street Expects EA Revenue to Hit Record Third Quarter tmsnrt.rs/36mRGU5

Video game publisher shares have increased over the past year (EA / TTWO / ATVI) Video game publisher shares have increased over the past year tmsnrt.rs/39CHBnZ

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