TTWO TTWO
Board Highlights
Topic List Post New Topic

MSG # GO



Rap Sheet

Author:

breinejm

Subject:

Earnings

Date:

05/05/15 at 3:19 PM CDT

 

 

READ: 8

RPLY: 0

1

0

RECS:0

Sentiment:

Buy

EA Earnings

Wow, glad I covered. They beat top and bottom line handily. FY16 is interesting. Rev's are guided a bit below consensus (4.4 vs. 4.5 billion) but EPS is higher at 2.75 vs. 2.64 currently. This is probably because margin improvements have happened faster than analysts were expecting. With the 1 billion buyback approved, this is becoming a riskier short. I still don't like it as a long, but I will probably stay on the sidelines for awhile. We know they manufacture earnings a bit with their GAAP vs. NonGAAP stuff, but with the buy back and other factors looking good, I expect them to manufacture >2.75 for next year. After that, it is anyone's guess.

Copyright 2014 All Rights Reserved; Patent Pending