Macquarie analyst, Ben Schachter, reiterated his Outperform rating on shares of Electronic Arts (NASDAQ: EA) but recognized that the quarterly results aren't solid enough to support the share price.

EA posted a decent quarter with improved margins from an acceleration in digital. As expected, Battlefield 1 outperformed and Titanfall 2 fell short, and FIFA also had a strong quarter to beat the relatively conservative guidance by $35mm. Owned IP, increased downloads, digital add-on content, and mobile improved GM by over 550bps y/y, but the analyst does not expect the gains to continue at the same pace next year with Star Wars royalties.

No change to the price target of $88.

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Shares of Electronic Arts closed at $83.43 yesterday.