EA Posts Weak Q3 Results; Worrying Signs in Apex Legends Mobile Shutdown and Star Wars Jedi Delay

Electronic Arts reported a weaker-than-expected fiscal third quarter as bookings and adjusted operating income came in below FactSet consensus. More concerning than the miss were the announcements of a delay for the launch of Star Wars Jedi: Survivor to April 28 from March 17 and that Apex Legends Mobile will shut down on May 1. While the delay for Jedi is a short one, we think that the relatively late decision to delay the title is somewhat troubling, particularly since the launch date was only announced on Dec. 8, 2022. Also, EA has a mixed record with short delays. We are maintaining our fair value estimate of $142 for EA.