MKM Partners Expects Electronic Arts (EA) to Come in at Low End of FY13 Range, Here's Why...
Tweet Send to a FriendGet Alerts EA Hot Sheet
Price: $23.03 +2.67%
Rating Summary:
5 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Rating Summary:
5 Buy, 10 Hold, 1 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 12 | New: 30
Trade EA Now!
MKM Partners maintains a 'Neutral' on Electronic Arts (NASDAQ: EA) price target of $13.00 (from $16.00).
Analyst, Eric Handler, said, "A largely in-line 1Q result and maintained FY13 EPS guidance of $1.05-$1.20 (with a modestly lower revenue outlook) might prove sufficient for a near-term relief rally for EA, but we see limited longer-term upside in the shares. In our opinion, headwinds from difficult publishing comparisons, a less predictable Star Wars MMO revenue model as it shifts more toward a free-to-play-type format, a slowing social gaming environment and FX headwinds should prove more than sufficient to offset higher growth outlooks for mobile and full game downloads, in our view."
All in, Handler expects EA will finish FY13 at the low end of its guidance range. He raises FY13 EPS estimate from $1.00 to $1.05, but lowers revenues from $4.27B to $4.12B.
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 $11.02 yesterday, with a 52 week range of $10.77-$21.45.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
Analyst, Eric Handler, said, "A largely in-line 1Q result and maintained FY13 EPS guidance of $1.05-$1.20 (with a modestly lower revenue outlook) might prove sufficient for a near-term relief rally for EA, but we see limited longer-term upside in the shares. In our opinion, headwinds from difficult publishing comparisons, a less predictable Star Wars MMO revenue model as it shifts more toward a free-to-play-type format, a slowing social gaming environment and FX headwinds should prove more than sufficient to offset higher growth outlooks for mobile and full game downloads, in our view."
All in, Handler expects EA will finish FY13 at the low end of its guidance range. He raises FY13 EPS estimate from $1.00 to $1.05, but lowers revenues from $4.27B to $4.12B.
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 $11.02 yesterday, with a 52 week range of $10.77-$21.45.
Join StreetInsider.com FREE and get immediately alerted when news breaks on your stocks and other market items - JOIN NOW
*NEW - Download StreetInsider's FREE iPhone and iPad App - Click Here
You May Also Be Interested In
- Morgan Stanley Maintains Bullish Stance on Walter Energy (WLT)
- Deutsche Bank Sees Upside in AIG (AIG) Stock
- Earnings Preview: Adobe (ADBE) Set to Report FQ2 After Close
Create E-mail Alert Related Categories
Analyst Comments, Analyst EPS Change, Analyst EPS View, Analyst PT Change
Login with Facebook
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!
