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Rap Sheet

Author:

LongTerm CapGains

Subject:

Earnings

Date:

10/10/16 at 4:19 PM CDT

 

 

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Sentiment:

Neutral

Question on Earnings expectations for EA and ATVI

EA is supposed to post improvements over the next year, i.e. trailing PE is ~24 and Forward PE below 21

ATVI has a ton of expectattons (priced in??) given that its trailing PE is > 40 and forward PE is 20

I know that ATVI has a full slate of game releases these Holidays, but are the expectations correct?  Given that it currently sports a high PE (relative to the S&P), are they correct?  And if so, what about after the Holidays?  Next year Holidays for example?  Is the current high multiple sustainabe?

As to EA, it looks even more overpriced given that this year's growth is rather tame.

ATVI's new CoD should have a strong opening thanks to bundling Modern Warfare 4 Remastered in the higher priced versions, which is officially the only way to get that highly sought bonus. although I expect in coming months it will be a separate $20-ish download. The launch may beat BLOPS3, but I doubt in the long run it will stay ahead, since it now has to compete with Battlefield and Titanfall. PSVR will sell out too, so it should be a strong holiday season for the sector. They are both quite richly priced, and imo only staying so strong on technicals, aka, "It's been going up therefore it will keep going up."


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Author:

Jester Debunker

Subject:

Earnings

Sentiment:

Neutral

Date:

10/11/16 at 10:55 AM CDT

Thanks for the info.  I heard that ATVI's modern warfare will take up some $130GB!!! Wow!  Can anything else fit in the Playstation or XBox drive?


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Author:

LongTerm CapGains

Subject:

Earnings

Sentiment:

Neutral

Date:

10/11/16 at 11:01 AM CDT

LOL yeah, 130GB is nuts. I think the game may be including some higher res assets for the Pro version? I have 2TB in mine, so no big deal, and I'm not planning to get it anyway. I believe if you have the digital version, MWR is a separate title and so you could save space deleting that if needed. I wonder how big the early downloads will be for disc buyers, because I haven't heard anything about it being on 2 or 3 discs, and 50GB is the standard Blu-Ray capacity.


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Author:

Jester Debunker

Subject:

Earnings

Sentiment:

Neutral

Date:

10/11/16 at 11:08 AM CDT

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