Benchmark Raises Price Target on Electronic Arts (EA) to $80.99 Following 1Q EPS Beat

Benchmark reiterated a Buy rating on Electronic Arts (NASDAQ: EA), and raised the price target to $80.99 (from $67.29), following 1Q16 results. The Company reported sales of $693M compared to the Street's $653M. Adjusted EPS of $0.15 beat the Street's $0.03 estimates.

Analyst Mike Hickey commented, "Fiscal Q1’16 - RIP: The Company reported sales of $693M (Guidance: $640M / Street: $653M) and adjusted EPS of $0.15 (Guidance: $0.00 / Street: $0.03). Key drivers of performance included: catalog sales and digital. The Company generated operating cash flow of $992 million over the trailing twelve months ending Q1."

Hickey also added, "The Company initiated fiscal Q2’15 guidance, adjusted revenue is expected to be $1.075B (Street: $1.129B) over adjusted EPS expected to be $0.40 (Street: $0.68). The Company increased fiscal ‘16 non-GAAP revenue guidance by $50M to $4.450B and diluted non-GAAP EPS guidance by $0.10 to $2.85 per share."

For an analyst ratings summary and ratings history on Electronic Arts click here. For more ratings news on Electronic Arts click here.

Shares of Electronic Arts closed at $72.30 yesterday.

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