ERTS - Sentiment Positive Ahead of Electronic Arts' Earnings Release

From Piqqem.com

Electronic Arts (Nasdaq: ERTS) is scheduled to release Q1 earnings this Tuesday August 4th, after the market close. Average analyst estimates for the electronic game maker are -$.13/share in EPS and $727.67 Million in Revenue. Twenty-four analysts track the stock with five upward EPS revisions in the last 30 days and no downward EPS revisions in the last 30 days. Last quarter, Electronics Arts beat average analysts expectations by .06/share or 14%, -.37/share vs. -.43/share.

I always find this a tough period waiting to see if the company is going meet, exceed, or miss their earnings estimates. One thing I have discovered of value is to analyze sentiment moves in a stock ahead of the company’s earnings release. In the case of Electronic Arts, I will use the piqqem sentiment index for Electronic Arts to see how sentiment has changed in the last quarter, for the months within that quarter, and from the end of the reporting quarter thru today. I’m looking for moves or changes that may foreshadow the earning release. (piqqem leverages the ‘wisdom of crowds’ by allowing its users to vote on the price directions of stock and then applies its own propriety factors to calculate sentiment for a security. In their model, 0 is the lowest and 4 is the highest sentiment).

Sentiment for Electronic Arts



Source Piqqem

The above chart shows an 11% increase in Electronic Arts’ sentiment from the end of Q4 thru August 2, 2009. On the piqqem scale, a sentiment rating of 2.68 is considered positive and indicates a buy. Only Electronic Arts knows their actual results, but their current sentiment points to Electronic Arts meeting or beating earnings expectations on Tuesday.

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