Electronic Arts Inc. Second Quarter Earnings Sneak Peek

S&P 500 (NYSE:SPY) component Electronic Arts, Inc. (NASDAQ:ERTS) will unveil its latest earnings on Thursday, October 27, 2011. Electronic Arts develops and distributes video game software and content across a variety of platforms.

Electronic Arts, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 15 cents per share, a wider loss from the year earlier quarter net loss of 3 cents. During the past three months, the average estimate has moved up from a loss of 17 cents. Between one and three months ago, the average estimate moved up. It has risen from a loss of 16 cents during the last month. Analysts are projecting profit to rise by 211.1% versus last year to 56 cents.

Past Earnings Performance: Last quarter, the company fell short of estimates by 0 cents, coming in at net loss of 48 cents per share against a mean estimate of a loss of 45 cents. The company fell in line with expectations in the fourth quarter of the last fiscal year.

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Wall St. Revenue Expectations: Analysts are projecting a rise of 9.1% in revenue from the year-earlier quarter to $964.8 million.

Analyst Ratings: Analysts are bullish on this stock with 12 analysts rating it as a buy, one rating it as a sell and eight rating it as a hold. Over the past 90 days, the average rating for the stock has moved up from hold to moderate buy.

A Look Back: In the first quarter, profit rose more than twofold to $221 million (66 cents a share) from $96 million (29 cents a share) the year earlier, but fell short analyst expectations. Revenue rose 22.6% to $999 million from $815 million.

Key Stats:

The company’s revenue has risen for two straight quarters. In the fourth quarter of the last fiscal year, the figure rose 11.3%.

Competitors to Watch: Activision Blizzard, Inc. (NASDAQ:ATVI), THQ Inc. (NASDAQ:THQI), Take-Two Interactive Software, Inc. (NASDAQ:TTWO), Microsoft Corporation (NASDAQ:MSFT), KONAMI CORPORATION (NYSE:KNM), Majesco Entertainment Co. (NASDAQ:COOL), Sony Corporation (NYSE:SNE), The Walt Disney Company (NYSE:DIS), and Glu Mobile Inc. (NASDAQ:GLUU).

Stock Price Performance: During August 26, 2011 to October 24, 2011, the stock price had risen $3.44 (16%) from $21.50 to $24.94. The stock price saw one of its best stretches over the last year between August 18, 2011 and August 31, 2011 when shares rose for 10-straight days, rising 19.7% (+$3.71) over that span. It saw one of its worst periods between July 25, 2011 and August 2, 2011 when shares fell for seven-straight days, falling 11.9% (-$2.86) over that span. Shares are up $8.56 (+52.3%) year to date.

(Source: Xignite Financials)

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