Gaming, sports in particular, is playing well for Electronic Arts (NASDAQ:EA). Double digits look good on their Wall Street game board. With more than 300 million registered players worldwide, Electronic Arts has its game on scoring a 12.8 surge in share price.
The Sims, Dragon Age, Plants vs. Zombies keep the numbers rising, but Madden NFL is in the spotlight now with the Super Bowl on tap for this weekend. Electronic Arts simulated the game, updating the rosters and showing the Seahawks vs. Patriots on Xbox One. It gives the game to MVP Tom Brady. How can you go against Madden’s impressive predictive record … 8-3 in the last decade, but did the prediction come before or after “deflate-gate”?
EA’s financial picture played out well in fiscal 2014 which pegged net revenue at $3.6 billion for the Redwood City California based gaming company. Quarterly non-GAAP revenues came in at $1,428 million. Mobile gaming scooped up $139 million of revenues overshadowing last year’s figures by 13 percent year over year, pulling in 160 million monthly active users for the quarter.
Chief Financial Officer Blake Jorgensen said: “Our ongoing digital transformation, including live services like EA SPORTS Ultimate Team, coupled with ongoing cost discipline, enables us to deliver consistent cash flow and earnings growth.” You can add to their cash flow by buying Madden NFL 15 Xbox One at Target for $39.99 on sale.
EA’s GAAP earnings for fiscal year 2015 are expected to be $2.35 per share. Zack’s says EA’s game portfolio, new consoles and a large mobile segment form the basis of this positive outlook.
