Techtraderdaily Blog: EA Stock Jumps After the Company Forecasts Strong Revenue for the Coming Year
Electronic Arts stock is up 5% in after-hours trading on Tuesday after the video-game giant reported strong fiscal 2020 revenue guidance and better-than-expected March quarter sales.
The back story. EA stock (ticker: EA) is up 17.5% in 2019. But some on Wall Street are jittery about cooling interest in Apex Legends, a free-to-play, Fortnite-like battle royale title that debuted in February.
EA closed down 1% at $92.73 on Tuesday.
Credit Suisse analyst Stephen Ju is convinced EA can delay new titles to “add more polish” to its portfolio if updates to Apex Legends keep users “engaged.” He maintained an Outperform rating and raised his price target on EA shares to $110 from $106 in a note Tuesday.
The numbers. EA on Tuesday reported adjusted earnings of 69 cents per share, short of Wall Street’s forecast for 97 cents. Revenue declined 21% year-over-year to $1.24 billion but exceeded expectations of $1.21 billion.
What has EA shares moving is strong fiscal 2020 revenue guidance of $5.375 billion. Wall Street expected $5.16 billion. EA added it expects fiscal 2020 full-year net income of $2.6 billion on bookings of $5.1 billion.
“FY20 will be a year of continued growth for our industry, and we’re excited to bring more great entertainment to the expanding audience around the world,” EA Chief Executive Andrew Wilson said in a statement announcing the results.
Write to Jon Swartz at email@example.com
Content courtesy of MarketWatch published on , original article here.