Electroinic Arts Fails To Impress With Q1 Beat And Raised Guidance

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Electronic Arts, Inc.

shares are trading lower by $1.30 at $71.00 in Friday's session. Despite a solid Q1 beat for EPS ($0.15 vs. Est. $0.03) and for revenue ($893M vs. Est. $649.65M) and raised guidance, the issue is in the red. After a lower open ($71.03 vs, Thursday's close of $72.30), it declined to $70.50 before staging a rebound. That low marked the lowest level for the issue since it bottomed on July 9 at $69.68. The ensuing rebound found resistance in the same area as had in its five previous sessions. From July 24 through July 30, the issue peaked between $72.49 and $72.84. Today's high comes in that same area at $72.73. Since making the high, it has retreated back to the $71 level. Brean's Todd Mitchell see ‘continued upside' in EA and reiterated his $78 price target. Wedbush's Michael Pachter has maintained his Outperform rating and $84 price target.