The 'Madden NFL' and 'FIFA soccer' video game maker reported second quarter earnings of 73 cents per diluted share, well above its own guidance of 50 cents per diluted share and ahead of analysts 53 cents per diluted share expectations.
Revenue for the quarter was $1.22 billion, ahead of analysts $1.2 billion estimates and the company's own $1.14 billion guidance.
The company raised its fiscal 2015 net revenue guidance to $4.175 billion from $4.100 billion and its EPS guidance to $2.05 per diluted share from $1.85 per diluted share.
TheStreet Ratings team rates ELECTRONIC ARTS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ELECTRONIC ARTS INC (EA) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, increase in net income, good cash flow from operations and solid stock price performance. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."
Highlights from the analysis by TheStreet Ratings Team goes as follows:
- You can view the full analysis from the report here: EA Ratings Report