(Reuters) – Wall Street analysts expect Electronic Arts Inc to report record quarterly earnings on Tuesday as gamers sitting at home due to fresh pandemic-induced restrictions increase demand for its sports titles “Madden NFL 21” and “FIFA 21 “in the most important holiday shopping season.
Investors will also be looking for details on the new version of its first-person shooter game “Battlefield” and the racing title “Need For Speed”. Delays in the updates of “FIFA” and “Madden NFL 21” affected the company’s sales last year.
“EA plans to launch 6 next-generation games in FY2022, titled a new Battlefield game that is expected to anchor a more robust CY2021 / FY2022 lead,” said Stifel analyst Drew Crum. release.
THE CONTEXT
EA and competitors Activision Blizzard Inc and Take-Two Interactive Software Inc. benefited from an increase in video game sales during the pandemic.
But faced with stiff competition, publishers need to keep their top-selling titles refreshed to attract new players and retain guys. EA’s quarterly results will give an idea of how its games are maintained against popular titles, such as Activision’s “Call of Duty: Black Ops: Cold War” and Take Two’s “NBA 2K21”.
For an image on Wall Street, EA revenue expects a record high in the third quarter:
THE FUNDAMENTAL
* According to the average estimate of 25 analysts, based on Refinitiv data, the company, based in Redwood City, California, will report a 20.7% increase in revenue to $ 2.387 billion compared to $ 1.98 billion a years ago.
* The average estimate of analysts for Electronic Arts is $ 2.96 earnings per share. For the same quarter last year, the company earned $ 2.52 per share.
MUURSTRAAT SENTIMENT
* The current average analysis rating on the stock is ‘buy’ and the outline of recommendations is 20 ‘strong buy’ or ‘buy’, 13 ‘hold’ and no ‘sell’ or ‘strong sell’.
* The average income estimate of analysts has fallen by about 32% over the past three months.
* The average 12-month price target for Wall Street for Electronic Arts Inc is $ 150, about 4.7% above the last closing price of $ 143.01.
For a picture of the shares of video game publishers rising over the past year (EA / TTWO / ATVI):
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Wall Street expects EA revenue to hit record highs in third quarter tmsnrt.rs/36mRGU5
Video game publishers ‘shares rise over the past year (EA / TTWO / ATVI) Video game publishers’ shares rise over the past year tmsnrt.rs/39CHBnZ
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Reporting by Subrat Patnaik in Bengaluru; Edited by Sweta Singh and Saumyadeb Chakrabarty