Electronic Arts ( EA Quick Quote EA - Free Report) recently announced that it will be hosting NFL Pro Bowl: Madden NFL 23 Edition on Feb 4, along with the National Football League (NFL) and the NFL Players Association. The game, hosted by Charissa Thompson and Marshawn Lynch, will feature Cowboys Micah Parsons and Vikings Justin Jefferson from NFL against Dolphins Tyreek Hill and Jets Rookie Sauce Gardner from the AFC. What brings major traction this season is that EA is bringing back the redesigned version of the classic Madden Cruiser, which is a giant bus that the sports and cultural icon, John Madden used to ride around in. The Madden Cruiser will debut for fans at Allegiant Stadium and then hit the road to Super Bowl LVII in Arizona with more stops further. However, the pro bowl in 2022 had drawn 6.7 million viewers on ABC, ESPN and DisneyXD, which was the smallest audience since 2006. This was due to disappointment among fans who questioned the bad quality of play that puts the players’ health under threat. They considered that the game lacked meaning and should revise its way of celebrating players. This concern of the fans has not yet been answered and could still face criticism from fans. EA Sports Expected to Witness Growth in 2023 With a Strong Slate of Games
EA Sports saw several successful launches in 2022, of which the most cherished was
FIFA 23, which recorded more than 10.3 million players joining the game within the first week. FIFA Mobile, which launched in October also received a 100% increase in daily, weekly and monthly active players year over year. Seeing the great excitement that users have for football, the company has decided to move forward with their own football video game title in 2023 called EA Sports FC. The game is said to have all the great experiences, modes, leagues, tournaments, clubs and athletes that the players witness in other football games. This will enable the company to live up to the expectations of the players.
Though the company has not discussed much about this, it is anticipated that it will be released by September this year across PS5, Xbox Series X/S and PC.
Besides this, to strengthen its slate for 2023, the company recently announced that it will be releasing EA Sports PGA Tour, a series of golf games, worldwide on Mar 24. These games are expected to gain traction from players and boost engagement at EA Sports, which currently stands at 200 million players. The company has projected a growing performance in third-quarter fiscal 2023 with net bookings and revenues growing approximately by 42% and 0-5%, respectively, year over year. However, the upcoming recession could be a headwind for EA as tight disposable incomes would refrain players from spending on gaming consoles and PCs. Such headwinds have caused its shares to decline 0.8% in the past year compared with the Zacks Consumer Discretionary Sector, which fell 21.4% in the same time frame.
Zack Rank & Stocks to Consider
EA currently has a Zacks Rank #3 (Hold).
You can see
the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Some better-ranked stocks in the same sector are
Manchester United ( MANU Quick Quote MANU - Free Report) , Stride ( LRN Quick Quote LRN - Free Report) and Liberty Global ( LBTYA Quick Quote LBTYA - Free Report) , each sporting a Zacks Rank #1 (Strong Buy). Shares of Manchester United have gained 63.9% in the past year. The Zacks Consensus Estimate for earnings is pegged at a loss of 1 cent, which has been constant over the past 30 days. Shares of Stride have gained 15.5% in the last year. Its earnings are estimated at $1.08 per share, which increased by 13.6% over the past 30 days. Shares of Liberty Global have declined 22.5% in the past year. Its earnings are estimated at 49 cents per share.