NEW YORK (TheStreet) -- Shares of Electronic Arts Inc. (EA - Get Report) are higher by 0.51% to $35.25 as the largest maker of games for the latest generation of consoles is extending its subscription service to more countries as it seeks to attract new players, Bloomberg reports.
The company’s EA Access service became available to users in North America, Australia, New Zealand and western European countries including the U.K. and France, the California-based company said before Europe’s largest gaming exhibition, Gamescom, in Cologne, Germany, which begins tomorrow, Bloomberg said.
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- The revenue growth came in higher than the industry average of 12.0%. Since the same quarter one year prior, revenues rose by 27.9%. Growth in the company's revenue appears to have helped boost the earnings per share.
- EA's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.42, which illustrates the ability to avoid short-term cash problems.
- The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 50.9% when compared to the same quarter one year prior, rising from $222.00 million to $335.00 million.
- Net operating cash flow has significantly increased by 101.61% to $4.00 million when compared to the same quarter last year. In addition, ELECTRONIC ARTS INC has also vastly surpassed the industry average cash flow growth rate of 41.10%.
- Powered by its strong earnings growth of 46.47% and other important driving factors, this stock has surged by 26.46% over the past year, outperforming the rise in the S&P 500 Index during the same period. We feel that the stock's sharp appreciation over the last year has driven it to a price level which is now somewhat expensive compared to the rest of its industry. The other strengths this company shows, however, justify the higher price levels.
- You can view the full analysis from the report here: EA Ratings Report