Electronic Arts Posts Mixed Fiscal Q3; Dependence on EA Sports and Apex Continues to Rise

Electronic Arts reported a mixed fiscal 2022 third quarter as bookings came under and adjusted EBITDA beat FactSet consensus expectations. The revenue miss was due in part to the troubled launch of Battlefield 2042 which had numerous performance issues and unpopular design choices. Due to the miss and a delay of the first season of live content for Battlefield 2042 until fiscal 2023, management lowered bookings guidance for the year to $7.5 billion. We maintaining our $142 fair value estimate as we expected a weak Battlefield launch.