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My name is Devin Kalel.
My name is Ashay Jorel.
We’re 9 year old twins.
Today we’re talking about EA – Electronic Arts.
It had its Investors Day Tuesday May 17th.
And last week EA reported great earnings.
The stock went up 13.7% on May 12th . . . after reporting impressive Q4 earnings May 11th.
It’s beaten earnings the past 8 quarters.
At their Investors Day, EA outlined its plan to generate $1 billion additional revenue in the next 2 to 5 years.
EA sees future growth coming from:
* action games
* shooter games
* international expansion
* digital growth
Their growth initiatives have some analysts projecting EA can earn $5 per share by 2020.
They are projected to earn $3.58 per share in 2017.
Digital growth will help improve margins.
We got our uncle the latest NHL game for Christmas.
EA makes about 65% margin on the physical disks.
They make about 85% margin on downloads.
Gaming is a growing industry.
10 years ago there were 200 million players.
5 years ago there were 1.5 billion gamers.
Today there are 2.6 billion players.
Some anticipated games being released this fiscal year are Mirror’s Edge Catalyst, coming out June 7th, and Battlefield 1, being release October 21st
The E3 Video Game Conference in mid-June could be another catalyst for the stock.
If you are looking to “play” the market . . . you may want to look at EA.
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