Slight Q2 Guidance Beat for Electronic Arts; Winter World Cup Should Provide a Boost to FIFA 23

Electronic Arts posted a slightly better-than-expected fiscal second quarter as bookings met and adjusted operating income beat guidance. Even with an in-line first half, management lowered its fiscal 2023 top-line guidance due to currency headwinds and the mobile market slowdown. The sports portfolio drove bookings in the quarter due to Madden and F1. The fiscal second half of 2023 should benefit from not only the sports titles but also the December launch of the next installment of Need for Speed and the recent switch of the Sims 4 base game to free to play. We maintain our $142 fair value estimate.