Impressive stock returns for EA
Electronic Arts (EA) has been a solid gaming stock over the last few years. Its revenue has risen from $4.31 billion in fiscal 2015 to $4.56 billion in fiscal 2016, $4.94 billion in fiscal 2017, and $5.18 billion in fiscal 2018.
The average analyst revenue estimate for EA’s fiscal 2019 is $5.31 billion. The company has estimated revenue of $5.2 billion, which is below its initial forecast of $5.55 billion. EA stock rose 106% in 2014, 46% in 2015, 15% in 2016, and 33% in 2017. Since the start of 2018, the stock has risen 8% despite short-term headwinds.
EA reported net bookings growth of 2% in Q1 2019
In fiscal Q1 2019, EA increased its net bookings 2% YoY (year-over-year) to $693 million. That growth decelerated from a 20% increase in fiscal Q1 2018. However, it expanded its network in the first quarter and launched a new mobile game on Tencent’s WeChat platform.
EA reported revenue and earnings above its guidance, and the company is now focusing on delivering new experiences to players. Its strategy is to deliver a compelling portfolio of games and content.
The FIFA franchise is one of the most popular for EA and has engaged ~100 million players across regions, platforms, and generations. EA launched a content update for FIFA 18 that drove user engagement with ~15 million unique players. EA also launched FIFA Mobile in China (FXI) in the first quarter. It has become the company’s strongest launch in the country.
EA’s Sims 4 community grew 35% year-over-year in terms of unique players, driven by the delivery of new content packs and updates.