Despite Weak NPD Data, Piper Jaffray Expects 'Beat and Raise' Quarter for EA (EA)

EA (NYSE: EA) is scheduled to report Sept. qtr results on 10/29 and the stock is testing its all time high of $75.76. Sept. qtr NPD sales declined y/y due to a tough FIFA comparison and the street is ahead of EA's guidance for EPS of $0.40 on revenue of $1.075B. Street consensus is $0.44 on $1.1B.

The NPD data showed a decline in FIFA 16 vs. FIFA 15 which is limited to U.S. retail and does not indicate a decline in Europe. NPD does not count FIFA or other titles bundled with hardware or full game digital downloads which means digital revenue from FIFA Ultimate Team could also be a wildcarrd.

Piper Jaffray analyst, Mike Olson, sees "potential for upside to results driven by FIFA sales in Europe and growth of digital revenue". Looking ahead, he thinks guidance could see a lift as well. "EA may slightly raise FY16 guidance, with comps easing in 2H2016 and the launch of Star Wars Battlefront in November". He maintained his overweight rating and $86 PT.

6 month title lineup:

• Dec. qtr - Star Wars Battlefront and Need for Speed
• Mar. qtr - Mirror's Edge: Catalyst

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 $74.08 yesterday.

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