NEW YORK (TheStreet) -- Shares of Electronic Arts (EA) closed up 5.41% at $45.99 after CFO Blake Jorgensen said the company was reaching its previously-outlined 20% operating margin goal well ahead of time with "further runway ahead", according to Credit Suisse, who hosted the video game software company at their Annual Technology Conference yesterday.
Jorgensen indicated that further opportunities remain from "a confluence of continued gross margin expansion from the mix shift to digital downloads, as well as additional cost cutting to be realized from refocusing the marketing mix towards online channels," analysts said.
"We come away increasingly convinced in our long-term investment thesis as EA reiterated its intent to redeploy the playbook for FIFA to its other key franchises in terms of a shift away from physical disk sales and into multiple product lines (free to play, mobile, live services)," Credit Suisse analysts added.
Additionally, Dave Madden, a senior vice president at Electronic Arts' mobile games division, said he believes that mobile gaming will be the "single largest advertising platform in the world," according to Venture Beat.
EA shares traded on heavy volume today with about 7.33 million shares changing hands by the market close in New York, compared to the average of 3.89 million.
Separately, 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: