from: thestreet.com/st...s.html

the company was given a "sector weight" rating by analysts at Pacific Crest today.

The maker of the highly successful 'Madden NFL' franchise reported $896 million in revenue during the period yielding an EPS of 39 cents per share. The results topped Pacific Crest's own expectations of $877 million in revenue and earnings 33 cents per share.

However, analysts at the firm remain cautious about the company despite the earnings and revenue beat, and are looking for a better entry point than the Redwood City, CA-based company's current levels:

"We are also lowering our F2016 revenue estimate to $4.52 billion from $4.60 billion and raising our EPS estimate to $3.00 from $2.60. Based on our new estimates, we think EA is fairly valued in low $60s. We continue to look for a better entry point to get more constructive on the name and prefer Activision ( (ATVI) $22.71, Overweight) and GameStop ( (GME), $40.02, Overweight) in the near term."

 

from: http://247wallst.com/media/2015/05/06/what-key-analysts-have-to-say-after-ea-earnings/

 

The company gave guidance for the fiscal first quarter and the 2016 fiscal year. The first quarter is expected to have $0.00 in EPS on $640 million in revenue, compared to consensus estimates of $0.19 in EPS on $774.59 million in revenue. In terms of the full fiscal year, EA expects EPS of $2.75 on $4.4 billion in revenue, versus the consensus estimates of $2.64 in EPS on $4.48 billion in revenue.

Credit Suisse made its investment case for its Outperform rating and $75 price target as:

While the initial fiscal year 2016 EPS guidance of $2.75 versus consensus $2.63 will dominate the narrative on EA shares today, the key takeaways for us were the continued signposts along the company’s digital transition: 1) downloads for some of the games on the new consoles have now reached 20%, 2) FIFA Online 3 already contributing ~$10 million per quarter in China, 3) 53% growth in Ultimate Team business. Battlefield, Need for Speed, and other major franchises still await a full free-to-play transition and global expansion. We believe both fiscal first quarter of 2016 and 2016 fiscal year guidance are conservative – especially given that this contemplates 9 million to 10 million units of Battlefront. We maintain our Outperform rating as we focus on the following factors: 1) further positive mix shift to digital, as well as 2) the expansion of EA’s addressable market to target the global online user base to start exerting a greater influence on margin expansion.

Credit Suisse adjusted its 2016 fiscal year estimates to match the guidance given by EA from the firm’s previous estimates of $2.35 in EPS to $4.24 billion in revenue.

 

from: finance.yahoo.com/ne...9.html

Barclays - Overweight, $68 price target

“We believe many of the factors that drove earnings revisions throughout FY15 – live services revenue, digital downloads, & mobile gaming – should continue into FY16 and beyond. Despite a $250M FX headwind to revenue in FY16, we expect to see further upside to margins, which are not only hedged against FX but should benefit from double digit growth in high-margin revenue streams like extra content and digital downloads.”

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Brean Capital - Buy, $66 price target

“We are staying close to guidance and look for revenue of $640 million and non-GAAP EPS of $0.01. Our revenue estimate assumes another 750,000 units of FIFA 15 and another 800,000 units of Battlefield: Hardline on strong attach rates to current-gen consoles. We expect digital to make up 80% of total revenue, up from 62% in the prior year. As a result, this should bring gross margin up to 75% from 70% in F1Q15. Gross profit gains should be cut by a 3% increase in total operating expense due to an additional week this quarter.”

 

MKM Partners - Neutral, $67 price target

“EA continues to execute on its key initiatives including strong digital revenue growth, improving gross margin and steady operating expense management. These efforts were quite evident in a sizable 4QFY15 outperformance. The company once again appears set up for another beat and raise year in FY16. Along those lines, we are raising our FY16 EPS to $2.90 (+16%) from $2.52, which is ahead of management's initial $2.75 (+10%) guidance (consensus was at $2.63). Our fair value is now $67 (20x FY16E EPS + cash), up from $54. Despite our higher valuation, the upside does not warrant a more positive investment recommendation.”

Wedbush - Outperform, $70 price target

"EA’s sports franchises all carry license fees, but generate recurring revenues from game sales and revenue growth from the company’s Ultimate Team free-to-play business. Core franchises Need for Speed (returning in FY:16), Battlefield (returning in FY:17), Dragon Age, Mass Effect, The Sims, and Mirror’s Edge provide significant contribution without license fees. This balance allows EA to take extra time to polish franchises, as it did with Battlefield Hardline and Dragon Age in FY:15. As its owned intellectual properties grow as a percentage of revenue, EA should see continuing operating margin expansion."