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Electronic Arts Inc EA

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Morningstar’s Analysis

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1-Star Price

PREMIUM

5-Star Price

PREMIUM

Economic Moat

PREMIUM

Capital Allocation

PREMIUM

Electronic Arts Reports Strong Start to Fiscal 2022; Apex Legends Continues To Grow

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

Electronic Arts posted a strong start to fiscal 2022 as the first-quarter top and bottom lines beat FactSet consensus expectations. While the tough comp from last year meant that net bookings declined, the 4% drop was impressive given the positive conditions for gaming created by the lockdown restrictions. The strong quarter, particularly within live services, provided management with the confidence to raise top-line guidance for the year, albeit by only 1% to $7.4 billion. We are maintaining our narrow-moat rating and our $142 fair value estimate.

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Company Profile

Business Description

EA is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile. The firm owns number of large franchises, including Madden, FIFA, Battlefield, Apex Legends, Mass Effect, Dragon’s Age, and Need for Speed.

Contact
209 Redwood Shores Parkway
Redwood City, CA, 94065
T +1 650 628-1500
Sector Communication Services
Industry Electronic Gaming & Multimedia
Most Recent Earnings Jun 30, 2021
Fiscal Year End Apr 2, 2022
Stock Type Slow Growth
Employees 11,000

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