UBS Adjusts Estimates on Electronic Arts (EA) Following 2Q Report
- ECB to scale back asset buys as it extends to end-2017
- lululemon athletica (LULU) Tops Q3 EPS by 4c; Adj.-Comps Outpaced Views
- Wall Street set to open flat after record day
- Oil rallies over $50 despite OPEC output cut doubts
- Pre-Open Stock Movers 12/08: (VYGR) (TLRD) (LULU) Higher; (OHRP) (VRNT) (CMTL) Lower (more...)
Get inside Wall Street with StreetInsider Premium. Claim your 2-week free trial here.
UBS reiterated a Buy rating and $90.00 price target on Electronic Arts (NASDAQ: EA) following the company's 2Q earnings report. UBS adjusted non-GAAP revenue estimates to $2.11b from $2.10b. Adjusted EPS estimates was raised to $2.37 from $2.33.
Analyst Eric Sheridan commented, "In FQ2, EA once again exceeded Street expectations on revs (on the strength of sports & mobile titles) while delivering better than expected margins & returning cash to shareholders. While management’s revised FY EPS guidance did not fully reflect the FQ2 beat, we believe this is largely conservatism (ahead of an impactful FQ3) as opposed to caution around the forward outlook. Moreover, a strong FIFA 17 launch (+13% sell-through YoY over first 4 weeks), the release of FIFA Mobile & upbeat commentary on the recent first-person shooter launches (albeit with no update on unit expectations) suggest that concerns over a light FQ3 may prove unwarranted. Longer term, we view the strength of EA's console, mobile & extra content revenues as signs that EA is benefiting from both cyclical & secular trends in gaming. Accordingly, we believe the risk-reward continues to skew favorably for EA at current levels."
Shares of Electronic Arts closed at $77.84 yesterday.
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Guggenheim Reiterates Buy on United Natural Foods (UNFI) Following 1Q Report
- FBR Capital Raises Price Target on TEGNA (TGNA) Following Investor Conference
- Lululemon Athletica (LULU) PT Raised to $75 at Oppenheimer
Create E-mail Alert Related CategoriesAnalyst Comments, Analyst EPS Change, Analyst EPS View
Related EntitiesUBS, Earnings
Sign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!