BMO Bullish on EA’s Future

Financial analyst Edward Williams from BMO Capital Markets send out a research note this morning telling investors that EA's mostly flat revenue for the latest quarter was good enough to earn the company a positive rating from the firm. Yesterday EA reported non-GAAP revenues of $495 million and a non-GAAP EPS loss of $0.40, respectively. This compares to $491 million in revenues and a loss of $0.41 last year. BMO expected $451 million in revenue and a loss of $0.61, while consensus estimates were $454 million and a loss of $0.60.

Williams said that the "narrower-than-expected loss for the June quarter significantly exceeded expectations."

BMO raised its FY2014 and FY2015 EPS estimates to a $30 target on shares and reiterated its Outperform rating.

"With next-generation consoles from Microsoft and Sony as key catalysts, we believe Electronic Arts is well positioned for a period of sustained growth with an impressive slate of core titles, strong digital growth, and focus on cost control," wrote Williams. "We also believe the company continues to leverage its portfolio of key brands and evolving business models across multiple platforms to generate higher ARPU."


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