The game restarts the key to future growth, as EA has recorded record revenue

(Reuters) – Wall Street analysts expect Electronic Arts Inc. to report record quarterly revenue on Tuesday as players stuck at home due to fresh pandemic-induced restrictions increase demand for its “Madden NFL 21” and “FIFA 21” sports titles 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 “FIFA” and “Madden NFL 21” upgrades affected the company’s sales last year.

“EA plans to launch 6 next-generation games in FY2022, with a new Battlefield game expected to anchor a more robust CY2021 / FY2022 slate,” said Stifel analyst Drew Crum, adding that the company did not have a single one this year. release action.

THE CONTEXT

EA and its rivals Activision Blizzard Inc. and Take-Two Interactive Software Inc. benefited from increased video game sales during the pandemic.

But in the face of fierce competition, publishers need to refresh their best-selling titles to attract new players and keep old ones. EA’s quarterly results will provide an indication of how its games have opposed popular titles, such as Take Two’s “Call of Duty: Black Ops: Cold War” and Take Two’s “NBA 2K21.”

For a Wall Street chart, EA revenue is expected to reach a record high in the third quarter:

THE FUNDAMENTALS

* The Redwood City, Calif. Company is expected to report a 20.7% increase in revenue to $ 2.387 billion from $ 1.98 billion a year ago, according to the average estimate of 25 analysts, based on data Refinitive.

* Analyst average estimate for Electronic Arts is $ 2.96 earnings per share. For the same quarter last year, the company reported earnings of $ 2.52 per share.

THE FEELING OF THE WALL STREET

* The current average valuation of the stock analyst is “buy” and the breakdown of recommendations is 20 “buy strong” or “buy”, 13 “hold” and not “sell” or “sell strong”.

* Analysts’ average earnings estimate has fallen by about 32% in the past three months.

* Wall Street’s 12-month average target for Electronic Arts Inc is $ 150, up about 4.7% from its last closing price of $ 143.01.

For a graph about the actions of video game publishers have increased in the last year (EA / TTWO / ATVI):

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Wall Street expects EA revenue to reach record high in Q3 tmsnrt.rs/36mRGU5

Video game publishers ‘shares have risen in the last year (EA / TTWO / ATVI) Video game publishers’ shares have risen in the last year tmsnrt.rs/39CHBnZ

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