logo
Sign in or Register

Already a member?

Sign in

Or sign in with your account on:

Not a member yet?

Register
    

 


Electronic Arts (EA) Falls on Lower Sales Estimates

By  +Follow October 2, 2013 9:48AM
Share:
Tickers Mentioned:

Shares in video game maker Electronic Arts (EA) fell sharply Wednesday after analysts raised concerns about the company’s sales moving forward. Shares in Electronic Arts were off by almost 3 percent just a few days after the company announced that it would be discontinuing its NCAA game next year due to legal concerns.

Protracted Legal Battle Ends NCAA Games

Some of the most popular titles for Electronic Arts have always been their college sports themed games, but a recent lawsuit has thrown their continued existence into question. Many former student-athletes have sued over the use of their images without permission, leaving Electronic Arts potentially exposed.

“The ongoing legal issues combined with increased questions surrounding schools and conferences have left us in a difficult position,” Weber wrote. “One that challenges our ability to deliver an authentic sports experience, which is the very foundation of EA Sports games.”

News came on Sunday that Electronic Arts had agreed to settle with the former athletes for some $40 million.

Analyst Expects Lower Sales for EA

Wednesday’s decline, though, appears to be a reaction to analysis from Cowen & Co.’s Doug Creutz. Concern over depressed sales for Medal of Honor: Warfighter led Creutz to tell Games Industry "Since late July we have been cautious about EA's ability to reach management'shttp://images.intellitxt.com/ast/adTypes/icon1.png FY13 guidance due to our view that Medal of Honor: Warfighter appears likely to be a major disappointment. Based on our read of pre-release tracking data, we think the game might struggle to sell through 2 million units worldwide."

Lowered expectations for sales combined with legal trouble and the loss of one of its most popular titles helped push shares down on Wednesday, continuing a month-long stumble that’s starting to mar an otherwise successful year. The stock’s down over 3.5 percent since the start of September, but it had climbed almost 85 percent over the first eight months of the year.

 

 

[Image Courtesy of Wikimedia Commons]

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions. To read our full disclosure, please go to: http://www.equities.com/disclaimer


Liked What You Read? Join Equities.com as a contributor and get eyeballs on your content FOR FREE!

				
				
By  +Follow October 2, 2013 9:48AM
Share:

Comments

 

blog comments powered by Disqus

 Today's Must Reads

5 Small-Cap Energy with Hedges to Survive Oil's Bear Market


DraftKings and FanDuel: The New Face of Legalized Online Sports Betting

Is the Market Paying the Toll of Tech?

What Will Uber Look Like in the Future?


How Dodd-Frank Divides Political Parties Prior to 2016 Election

 

Apple (AAPL) is expected to announce its latest quarterly earnings next week. As the most valuable company by mark... in Equities.com's Hangs on LockerDome

About us

Equities.com is an advanced financial data portal and social network designed to connect self-directed investors with the world’s most innovative startup and small cap companies. Through our in-depth coverage of small cap markets, comprehensive research and stock valuation reports, state of the art issuer products, and world class events, Equities.com provides the social tools and insight that drive tomorrow’s investment relationships and opportunities.

Market Data powered by QuoteMedia.
Copyright © QuoteMedia. Data delayed 15 minutes unless otherwise indicated. Terms of Use.

Login or Register

LOG IN