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

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.