Analyst: Here’s How We’re Adjusting Our Outlook for EA Now

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The following is an excerpt from a report compiled by Michael Pachter of Wedbush Securities.

EA (NASDAQ:EA): Despite the Q3 revenue miss, EPS was in line from digital growth and cost control. Revenue was $1.18 billion, compared with our estimate of $1.33 billion, consensus of $1.29 billion, and guidance of $1.25 – 1.35 billion, with the miss driven by Medal of Honor and sector headwinds. EPS was $0.57, compared with our estimate of $0.61, consensus of $0.56, and guidance of $0.50 – 0.60.

Lower FY:13 guidance. Management decreased FY:13 guidance for revenue to $3.778 – 3.878 billion from $4.05 – 4.20 billion and for EPS to $0.86 – 1.00 from $1.00 – 1.15. Decreased guidance reflects industry softness, volatility from the console transition, and the delay of Fuse (estimated $150 million) into FY:14.

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Adjusting our estimates. Decreasing our FY:13 estimates for revenue to $3.88 billion from $4.20 billion and for EPS to $1.00 from $1.15 to reflect revised guidance. Decreasing our FY:14 estimate for revenue to $4.25 billion from $4.75 billion to reflect industry softness and lower digital revenue expectations, but maintaining our…

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