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Electronic Arts (EA) Falls on Lower Sales Estimates

By  +Follow October 2, 2013 9:48AM
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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.


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Results for ea
Diego Trujillo Sanch
22 Nov 14 16:45:38
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P.I.E, hold it down.
22 Nov 14 16:15:16
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FinSentS NASDAQ
22 Nov 14 15:26:25
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FinSentS SP500
22 Nov 14 15:13:22
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Dan Ion Oprea
22 Nov 14 14:33:33
RT @pbrat40plus: Another great example of one of my #Swingtrades this year, Full Trade Diary for this $EA trade here http://t.co/LpaLZGrZws…
paul bratby
22 Nov 14 14:30:32
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TitanfallBot
22 Nov 14 13:09:32
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22 Nov 14 13:09:09
$EA Respawn Titanfall metric (38 seconds in) "7 million unique users" https://t.co/LAOLcCx8BR
theNextBillionaire
22 Nov 14 12:11:48
RT @1nvestor: 1) Swing acct: $BABA $COV $EWZ $RCAP $SWKS $TRV $VDSI $Z 2) Long-Term acct: $AIG $COW $DXJ $EA 3) IRA: $ACHN $CYBR $DVA $IN…
Stock Reversals
22 Nov 14 10:11:40
Consolidations R Annoying but Key http://t.co/KpM80ECyQs $EA $FIVE $BIDU $FLT $CDW $LQ $HOLI $NEWM $JAZZ $ZAYO $CTLT CTLT - Weekend Edition
Un Cow-Boy
22 Nov 14 07:44:40
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John
22 Nov 14 07:44:06
RT @1nvestor: 1) Swing acct: $BABA $COV $EWZ $RCAP $SWKS $TRV $VDSI $Z 2) Long-Term acct: $AIG $COW $DXJ $EA 3) IRA: $ACHN $CYBR $DVA $IN…
Seeking Alpha - All
22 Nov 14 07:41:14
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Derald Muniz
22 Nov 14 06:32:00
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Paul Franke
22 Nov 14 05:38:41
Ranked #1-10 $YHOO $SPLS $CSX $BBY $DPS $TGT $UNH $ACT $MDT $EA Strong Retail sector performance continues. Not Investment Advice.
Sleek Money
22 Nov 14 05:37:10
Electronic Arts Earns “BBB-” Credit Rating from Morningstar $EA http://t.co/Pkr9UvOTDi
Daniel Ernst
22 Nov 14 04:59:06
Tis the season, Black Friday season $SNE $6758.jp $5930.JP $AAPL $ATVI $EA $TTWO $MSFT $BBY http://t.co/oWVKESEb4h
US Consumer News
22 Nov 14 04:19:30
Electronic Arts EVP Joel Linzner Sells $110,000 in $EA http://t.co/64zXogDdJZ
US Banking News
22 Nov 14 04:19:21
Electronic Arts EVP Joel Linzner Sells $110,000 in $EA http://t.co/LXh9Tyy2Mx
innov8v
22 Nov 14 02:57:05
solid week...remain long $SPX, $NDX, $XNPT, $MMS, $ODFL, $EA, $SWI, $TSRA, $FB (barely), and $AAPL
Carletta Fisher
22 Nov 14 02:27:56
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Rita Simpkins
22 Nov 14 02:16:29
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Tressie Clayworth
22 Nov 14 00:29:33
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Astrid Walton
21 Nov 14 21:30:40
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Sanora Shoemaker
21 Nov 14 20:57:16
Bad #Invesments like got you down $EA $ATI $RMD $BLOX Worth a look http://t.co/BfnlySfSph
lazersgaming
21 Nov 14 20:33:57
EA 43.49 Electronic Arts Inc $EA http://t.co/2lSGwJFsWS
Gamers Garden
21 Nov 14 20:33:57
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21 Nov 14 20:33:56
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21 Nov 14 20:33:56
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Gaming Giveaways
21 Nov 14 20:33:55
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21 Nov 14 20:33:55
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21 Nov 14 20:33:55
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UK Gaming News
21 Nov 14 20:33:54
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21 Nov 14 19:59:49
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21 Nov 14 19:48:44
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Nixon Domville
21 Nov 14 19:29:41
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DennyT
21 Nov 14 19:01:21
EA Stock 43.49 Electronic Arts Inc $EA Hit a 52 week high of 44.06 Closing the day 11/21/14 at 43.49 +0.34 +0. http://t.co/Yu4JNugxpp
DennyT
21 Nov 14 19:00:59
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Carlyn Mccloskey
21 Nov 14 18:39:54
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Lu Askew
21 Nov 14 18:03:51
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21 Nov 14 17:31:06
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21 Nov 14 17:25:08
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21 Nov 14 16:00:16
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FinSentS NASDAQ
21 Nov 14 15:40:38
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martha rodriguez ort
21 Nov 14 15:23:41
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FinSentS SP500
21 Nov 14 15:20:55
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NASDAQ
21 Nov 14 14:42:17
$EA - Statement of Changes in Beneficial Ownership (4) http://t.co/S0N1EqqnUT
john smith
21 Nov 14 14:41:47
$EA - Statement of Changes in Beneficial Ownership (4) http://t.co/9GTAC79Tva
				
				
By  +Follow October 2, 2013 9:48AM
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