Wedbush analysts are in the game when it comes to Electronic Arts Inc stock, as the video game company’s fiscal fourth quarter results more than impressed.
The firm raised its price target to $144 from $139 and maintained its Outperform rating. EA shares traded 1.6% lower Wednesday at $123.42.
“EA reported outstanding results, driven by outsized performance of its live services, which includes its Ultimate Team, Apex Legends and mobile businesses,” analysts said. “Guidance was appropriately conservative as it is early in the fiscal year and the company is going up against a tough comparable year that included a boost from the World Cup and contribution from Apex Mobile.
For the period ended March 31, EA posted revenue of $1.87 billion, up from $1.83 billion a year earlier and topping Street expectations of $1.76 billion. The company’s loss was $0.04 per share, compared to a profit of $0.80 per share a year ago.
Additionally, the firm noted, sales of FIFA 23 have already outperformed lifetime sales of FIFA 22 despite only being out for six months.
Looking ahead, the analysts project fiscal 2024 net bookings of $7.3 billion to $7.7 billion and non-GAAP earnings per share of $6.35 to $6.95. That compares to previous estimates of $7.7 billion and $6.75 per share, respectively, and Street consensus expectations of $7.52 billion and $6.57 per share.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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