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.
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