Electronic Arts Earnings: Here’s Why the Stock is Up Now

Electronic Arts Inc. (NASDAQ:EA) delivered a profit and missed Wall Street’s expectations, AND met the revenue expectation. The revenue miss is a negative sign to shareholders seeking high growth out of the company. Shares are up 7.01%.

Markets are at 5-year highs! Discover the best stocks to own. Click here for our fresh Feature Stock Pick now!

Electronic Arts Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased 223.53% to $0.55 in the quarter versus EPS of $0.17 in the year-earlier quarter.

Revenue: Decreased 23.98% to $1.04 billion from the year-earlier quarter.

Actual vs. Wall St. Expectations: Electronic Arts Inc. reported adjusted EPS income of $0.55 per share. By that measure, the company missed the mean analyst estimate of $0.58. It met the average revenue estimate of $1.04 billion.

Quoting Management: “As we enter a new fiscal year, EA is well-positioned for dynamic growth on next generation consoles, PCs, and mobile platforms,” said Executive Chairman Larry Probst. “With world-class games, a rapidly growing digital business, and top-notch creative talent, we are excited about EA’s strategy for FY 2014 and beyond.”

Key Stats (on next page)…

Revenue increased 12.8% from $922 million in the previous quarter. EPS decreased 3.51% from $0.57 in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a loss of $0.35 to a loss $0.36. For the current year, the average estimate has moved down from a profit of $0.95 to a profit of $0.88 over the last ninety days.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute – click here and get our CHEAT SHEET stock picks now.

(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)