November 2013 Console/Handheld Software Sales Down 24% - Wedbush Comments (EA) (TTWO) (ATVI)
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Rating Summary:
28 Buy, 17 Hold, 0 Sell
Rating Trend:
Up
Today's Overall Ratings:
Up: 10 | Down: 11 | New: 6
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Electronic Arts (Nasdaq: EA) stock opened higher on Friday following the release of November console/handheld software sales. Overall sales were down 24%, according to NPD data, but EA and Take-Two (Nasdaq: TTWO) performed well. The decline in overall sales is tied to "wallet share and supply constraints of next-gen consoles," according to Wedbush analyst Michael Pachter.
"U.S. console/handheld software sales were $1.09 billion, down 24% compared to last year, and below our estimate of $1.25 billion. The sales decline was in part attributable to the debuts of Microsoft's Halo 4 and Ubisoft's Assassin’s Creed III last November (the newest Assassin's Creed was initially released in October this year), and a sales decrease for the newest iteration in Activision Blizzard's Call of Duty franchise. In addition, Nintendo software sales were well below our expectations, with the 3DS and Wii U failing to generate sales close to the levels that we expected. Wallets were drained by the two new consoles, and supply constraints lasted through month-end, likely having a negative impact on software sales," said Pachter.
Activision Blizzard, Inc. (Nasdaq: ATVI) sales were down 23%.
EA sales were up 60%.
Nintendo sales were down 2%.
Take Two sales were up 91%.
Ubisoft sales declined 54%.
Covered publishers declined 14%.
"Combined next-gen console (PS4, XB1, Wii U) hardware unit sales were above our expectations, while current-gen console (PS3, 360, Wii) and handheld (3DS, DS, PS Vita) hardware unit sales were well below our expectations, resulting in total hardware unit sales being below our estimates but up y-o-y. There were 223,000 Wii U units sold vs. our 150,000 estimate, 647,000 Xbox 360s sold vs. our 700,000 estimate, and 425,000 PS3s sold vs. our 550,000 estimate," added the analyst.
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 $20.97 yesterday.
"U.S. console/handheld software sales were $1.09 billion, down 24% compared to last year, and below our estimate of $1.25 billion. The sales decline was in part attributable to the debuts of Microsoft's Halo 4 and Ubisoft's Assassin’s Creed III last November (the newest Assassin's Creed was initially released in October this year), and a sales decrease for the newest iteration in Activision Blizzard's Call of Duty franchise. In addition, Nintendo software sales were well below our expectations, with the 3DS and Wii U failing to generate sales close to the levels that we expected. Wallets were drained by the two new consoles, and supply constraints lasted through month-end, likely having a negative impact on software sales," said Pachter.
Activision Blizzard, Inc. (Nasdaq: ATVI) sales were down 23%.
EA sales were up 60%.
Nintendo sales were down 2%.
Take Two sales were up 91%.
Ubisoft sales declined 54%.
Covered publishers declined 14%.
"Combined next-gen console (PS4, XB1, Wii U) hardware unit sales were above our expectations, while current-gen console (PS3, 360, Wii) and handheld (3DS, DS, PS Vita) hardware unit sales were well below our expectations, resulting in total hardware unit sales being below our estimates but up y-o-y. There were 223,000 Wii U units sold vs. our 150,000 estimate, 647,000 Xbox 360s sold vs. our 700,000 estimate, and 425,000 PS3s sold vs. our 550,000 estimate," added the analyst.
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 $20.97 yesterday.
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