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Electronic Arts (EA) Gains From Expansion of Games Portfolio
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Electronic Arts (EA - Free Report) is having a terrific year, with shares up almost 17% on a year-to-date basis. The upside can be attributed to a robust portfolio and solid performance from games like Apex Legends, The Sims and the FIFA franchise.
Additionally, EA’s strong momentum is expected to continue due to increased consumer spending on video games, stemming from coronavirus induced stay-at-home orders.
Further, the company stated that it expects to deliver 14 titles in fiscal 2021. In fourth-quarter fiscal 2020, the company’s revenues rose 12% year over year to $1.38 billion.
Notably, EA has outperformed the S&P 500 Index on a year-to-date basis.
EA is witnessing growth in active player accounts, owing to new releases, increased engagement in popular franchises and live services growth. EA’s expanding game portfolio is a major growth driver.
EA recently revealed the first look of EA SPORTS Madden NFL 21 with NFL MVP Lamar Jackson on the cover across all editions. The game will release on Aug 28 and include brand-new ball-carrier and D-Line mechanics, realistic open-field tackling and new celebrations among others.
There are three different editions open for pre-order: Standard ($60), Deluxe ($80), and MVP ($100), and each one comes with pre-order bonuses. Moreover, the company has reached partnerships with both Microsoft and Sony to offer players with dual entitlement where a Madden 21 Xbox One or PS 4 buyer will be able to upgrade for free to Madden 21 on Xbox Series X or PS 5 for no additional cost.
Additionally, EA announced a new Star Wars game, Star Wars: Squadrons, a first-person space combat game that will have players flying the series’ famous Star Wars ships, including the X-Wing, A-Wing, Y-Wing, U-Wing, TIE Fighter, TIE Interceptor, TIE Bomber, and TIE Reaper fighters in head-to-head single-player and multiplayer battles.
Developed by Motive Montreal (which previously contributed to both Battlefront II and Anthem) the game is set to release on Oct 2, 2020 on PS4, Xbox One, PC via Origin, Steam and the Epic Games Store, and will be playable via Virtual Reality (VR) on PS4 and PC with cross-play support.
Moreover, the release of Command & Conquer Remastered Collection with its enhanced features is likely to aid EA attract new players to the franchise. Notably, per SteamDB data, the game has already recorded a peak of 42,587 concurrent players on Steam. The original Command & Conquer was a hugely popular RTS series with large player base.
Intensifying Competition
EA faces significant competition from the likes of Take Two Interactive Software (TTWO - Free Report) , Nintendo (NTDOY - Free Report) and Activision Blizzard , among others.
Notably, Take Two’s Red Dead Redemption 2 has sold 31 million copies while Borderlands 3 shipped 10 million units worldwide as of the last reported quarter. Moreover, Nintendo stated that Animal Crossing: New Horizons, which released on Mar 20, sold more than 13.41 million copies in its first six weeks.
Activision is not far behind, with both Call of Duty: Modern Warfare and Call of Duty: Warzone becoming huge successes. Further, Take Two’s rumored Grand Theft Auto and Bully sequels, as well as Activision’s Shadowlands expansion for World of Warcraft are expected to intensify competition in the market.
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Electronic Arts (EA) Gains From Expansion of Games Portfolio
Electronic Arts (EA - Free Report) is having a terrific year, with shares up almost 17% on a year-to-date basis. The upside can be attributed to a robust portfolio and solid performance from games like Apex Legends, The Sims and the FIFA franchise.
Additionally, EA’s strong momentum is expected to continue due to increased consumer spending on video games, stemming from coronavirus induced stay-at-home orders.
Further, the company stated that it expects to deliver 14 titles in fiscal 2021. In fourth-quarter fiscal 2020, the company’s revenues rose 12% year over year to $1.38 billion.
Notably, EA has outperformed the S&P 500 Index on a year-to-date basis.
Electronic Arts Inc. Price and Consensus
Electronic Arts Inc. price-consensus-chart | Electronic Arts Inc. Quote
Gaming Lineup to Boost User Engagement
EA is witnessing growth in active player accounts, owing to new releases, increased engagement in popular franchises and live services growth. EA’s expanding game portfolio is a major growth driver.
EA recently revealed the first look of EA SPORTS Madden NFL 21 with NFL MVP Lamar Jackson on the cover across all editions. The game will release on Aug 28 and include brand-new ball-carrier and D-Line mechanics, realistic open-field tackling and new celebrations among others.
There are three different editions open for pre-order: Standard ($60), Deluxe ($80), and MVP ($100), and each one comes with pre-order bonuses. Moreover, the company has reached partnerships with both Microsoft and Sony to offer players with dual entitlement where a Madden 21 Xbox One or PS 4 buyer will be able to upgrade for free to Madden 21 on Xbox Series X or PS 5 for no additional cost.
Additionally, EA announced a new Star Wars game, Star Wars: Squadrons, a first-person space combat game that will have players flying the series’ famous Star Wars ships, including the X-Wing, A-Wing, Y-Wing, U-Wing, TIE Fighter, TIE Interceptor, TIE Bomber, and TIE Reaper fighters in head-to-head single-player and multiplayer battles.
Developed by Motive Montreal (which previously contributed to both Battlefront II and Anthem) the game is set to release on Oct 2, 2020 on PS4, Xbox One, PC via Origin, Steam and the Epic Games Store, and will be playable via Virtual Reality (VR) on PS4 and PC with cross-play support.
Moreover, the release of Command & Conquer Remastered Collection with its enhanced features is likely to aid EA attract new players to the franchise. Notably, per SteamDB data, the game has already recorded a peak of 42,587 concurrent players on Steam. The original Command & Conquer was a hugely popular RTS series with large player base.
Intensifying Competition
EA faces significant competition from the likes of Take Two Interactive Software (TTWO - Free Report) , Nintendo (NTDOY - Free Report) and Activision Blizzard , among others.
Notably, Take Two’s Red Dead Redemption 2 has sold 31 million copies while Borderlands 3 shipped 10 million units worldwide as of the last reported quarter. Moreover, Nintendo stated that Animal Crossing: New Horizons, which released on Mar 20, sold more than 13.41 million copies in its first six weeks.
Activision is not far behind, with both Call of Duty: Modern Warfare and Call of Duty: Warzone becoming huge successes. Further, Take Two’s rumored Grand Theft Auto and Bully sequels, as well as Activision’s Shadowlands expansion for World of Warcraft are expected to intensify competition in the market.
Nevertheless, EA, which currently carries a Zack Rank #3 (Hold), is well poised to benefit from its franchise strength, exciting content and constant stream of new releases. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
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