Categories Earnings, LATEST, Technology

Earnings Preview: Analysts wait for Electronic Arts Q2 2019 result

Electronic Arts (EA) is scheduled to report its Q2 2019 results on Tuesday, Oct 30. The gaming giant now expects GAAP revenues of $1.27 billion with net bookings at $1.16 billion. Despite a 5% price dip in 2018, it might be a better idea to wait some more to invest in the stock.

By July end, EA announced its plan to move to recurring subscriptions slowly. Analysts are yet to see potential to increase customer numbers through this Netflix (NFLX) subscription-based monetization model.

When Electronic Arts posted last quarterly results in July beating earnings estimates, top franchise titles such as Fifa Online, SimCity, The Sims, and Battlefield, performed well.

Electronic Arts (EA) first quarter 2019 earnings

On Sep 5, EA launched NBA Live Mobile on Sep 5 and it is expected to add to the growing mobile revenues, which make about 20% of total revenues. Revenues from mobile soared 37% to $231 million in the last quarter.

The new releases of NBA LIVE 19 and NHL 19 in the second quarter is also expected to add to the revenues.

But EA has kept its earnings estimates for the whole year the same, hinting an expecting drop in the coming quarters.

Adding to it, EA posted slowing mobile revenue growth, especially when the global mobile games market is growing at least 25% annually. Rival Activision Blizzard (ATVI), however, seemed to have capitalized on the market trend.

Long-term investors of EA are likely to wait for the quarterly results on Monday, especially to the balance sheet.

 

Most Popular

Earnings Preview: Home Depot’s Q3 report likely to reflect weak consumer demand

The US housing industry has been mostly resilient to headwinds like economic uncertainties so far this year. However, housing activity cooled in recent months as high mortgage rates and inflation

Take-Two Interactive (TTWO) will report Q2 2025 earnings this week, a few points to note

Shares of Take-Two Interactive Software, Inc. (NASDAQ: TTWO) stayed red on Monday. The stock has gained 16% over the past three months. The gaming company is set to report its second

Earnings Summary: Highlights of Loews Corporation’s (L) Q3 2024 report

Loews Corporation (NYSE: L), a diversified company with businesses in the insurance, energy, hospitality, and packaging industries, on Monday reported higher revenue and profit for the third quarter of 2024.

Tags

Add Comment
Loading...
Cancel
Viewing Highlight
Loading...
Highlight
Close
Top