The Earnings Season Could Be Beneficial for EA (Electronic Arts)

Despite their major downfall in 2018, investors believe that EA represents a potential for the earnings season. In their words, EA might be such company and their earnings are coming up pretty soon.

Is EA Really Done For?

EA has been proclaimed as the worst company in the USA, for a couple of years straight. Their major titles such as Battlefield V and Anthem have seen a significant drop in the player base. But, despite all of that, EA is seeing favorable earnings as of late. The most accurate estimate for the second quarter of 2019 is $1.08 per share. Compared to Zacks Consensus broader estimate of 97 cents per share, we can see that analysts are pretty hyped up for this company.

Analysts also gave the estimates for EA at ESP of +11.35% into the earnings season. This is far from the worst fate for EA.

Is Zacks Earnings ESP That Important?

It is. It is proved that Zacks Earnings ESP positive reading can be a beneficial and crucial factor for the company, able to produce positive surprises. Taking a look 10 years back, we can conclude that stocks with positive Earnings ESP with 3rd place on Zacks Rank perform better during the years. Not only that but they also show positive surprise in a vast majority of cases.

In the EA’s case, the company has a Zacks Rank #1, which is a strong buy. They are also in a positive ESP territory. This made the investors more and more interested, and many of them consider this stock.

The Future for EA Seems Bright

With all this in mind, EA can increase the revenue in 2019. Simply by looking at the recent earnings estimate revisions, we can tell that EA’s future might be brighter than their present. We’ve yet to see how the company will perform with their newly released titles. Source:

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