MKM Partners Expects Electronic Arts (EA) to Come in at Low End of FY13 Range, Here's Why...
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Price: $126.31 --0%
Rating Summary:
28 Buy, 17 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 13 | New: 16
Rating Summary:
28 Buy, 17 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 14 | Down: 13 | New: 16
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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.
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.
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