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.
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.
Shares of Beyond Meat Inc. (NASDAQ: BYND) were down 4% on Wednesday. The stock has dropped 22% over the past 12 months and 16% since the beginning of this year.
The gaming industry witnessed a spike in demand after the coronavirus-related movement restrictions forced people to stay indoors. As the consumption of online content grew steadily, spending on video games
Video game company Electronic Arts, Inc. (NASDAQ: EA) reported lower earnings and revenues for the fourth quarter of 2021. Earnings also missed analysts' forecast. During the March quarter, net bookings