Baird Reiterates Outperform on Electronic Arts (EA) Following 4Q Beat

Baird maintained an Outperform rating and $80.00 price target on Electronic Arts (NASDAQ: EA) following the company's 4Q earnings report. EA reported net revenues of $924M, well-above consensus of $889M and guidance of $875M, driven by strength in digital revenues, in particular extra content and mobile. EPS of $0.50 was ahead consensus of $0.42, driven predominantly by continued ongoing cost discipline and buyback-related lower share count.

Analyst Colin Sebastian commented, "Following a noisy holiday print impacted by FX and physical-mix issues, EA reported an impressive top- and bottom-line beat, driven by digital outperformance (+18.3% Y/Y vs. +16.4% in F3Q), specifically mobile and FIFA Ultimate Team strength (FIFA Ultimate Team revenue +48% Y/Y ex-FX). Looking ahead, EA's strong product pipeline (Battlefield, Titanfall, Mass Effect, Mirror's Edge) and continued digital penetration should drive growth and healthy margin expansion. Reiterate Outperform rating."

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 $64.54 yesterday.

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