Electronic Arts Stock: Game On for 2011
"They do generate a lot of revenue from Europe," Greenwald said, adding that he'd be interested to find out whether there will be some negative impact on the company's euro and pound denominated revenues. Also, although Electronic Arts is unlikely to have much to say about this for now, Greenwald said he'd like to get an update on the company's distribution deal with Respawn Entertainment.
Regarding Tuesday's fourth-quarter release, "people are already expecting a healthy beat relative to guidance and consensus," MKM Partners' Handlers said.
On average, analysts are expecting a solid fourth quarter with earnings of 5 cents on revenue of $835.39 million, given that sales of Battlefield Bad Company 2 Mass Effect 2 are both exceeding expectations so far. "Both games got off to very strong starts," Signal Hill's Greenwald said. The offsetting effect on these strong performers are underperformers Army of Two and Dante's Inferno, despite the hefty ad initiatives. Dante's Infernois doing "just OK," Greenwald said.
Electronic Arts stock has risen about 3.2% to $18.20, rebounding with the broader market.Analysts are expecting the big E3 Expo 2010, coming June 15 to June 17, to be an opportunity for Electronic Arts to show off its latest offerings. -- Reported by Andrea Tse in New York Follow Andrea Tse on Twitter and become a fan on Facebook.
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