EA Earnings: Solid Start for FC 24 Bodes Well for Global Football Franchise

Narrow-moat Electronic Arts posted solid fiscal 2024 second-quarter results as its core sports franchises performed very well. While it didn’t have a big direct impact on the quarter, the launch of EA Sports FC 24, the rebranded version of FIFA, at the end of September has gone smoothly thus far. Management continues to expect global football revenue will increase at a low-single-digit rate versus FIFA 23 despite lapping last year’s World Cup. We are leaving our $150 fair value estimate unchanged and believe the shares are undervalued.