ERTS Posts FQ3 Results Inline With Preannouncement
Analysts at BMO Capital Markets maintain their "outperform" rating on Electronic Arts (NASDAQ: ERTS), while reducing their estimates for the company. The target price for ERTS is set to $22.
According to BMO Capital Markets, Electronic Arts has reported its FQ3 results inline with its preannouncement, which was disappointing. “While revenues were in line with the recent preannouncement, they were down sharply from a year ago as packaged goods sales contracted. EA has significantly scaled back its operating expenses – however, expenses remain high relative to the current revenue run rate,” the analysts mention.
“As we progress through CY2010 we expect the company’s release slate to perform well,” the analysts add. BMO Capital Markets has reduced its EPS estimates for FY10 and FY11 to $0.42 and $0.65, respectively.
