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Electronic Arts Inc EA

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Electronic Arts Ends Fiscal 2021 on High Note; Recent Acquisitions Will Energize Fiscal 2022 Growth

Neil Macker, CFA Senior Equity Analyst

Analyst Note

| Neil Macker, CFA |

Electronic Arts posted a strong end to fiscal 2021 as the top and bottom lines for fourth quarter beat FactSet consensus expectations. Management expects 18% growth in net bookings for fiscal 2022 as the company benefits from its recent acquisitions of Codemasters, Glu Mobile, and Metalhead along with continued growth from EA Sports, Apex Legends, and Battlefield. We are maintaining our narrow moat rating and expect to raise our $134 fair value estimate after rolling our model to account for the higher than expected outlook for next year.

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Company Profile

Business Description

EA is one of the world's largest third-party video game publishers and has transitioned from a console-based video game publisher to the one of the largest publishers on consoles, PC, and mobile. The firm owns number of large franchises, including Madden, FIFA, Battlefield, Apex Legends, Mass Effect, Dragon’s Age, and Need for Speed.

Contact
209 Redwood Shores Parkway
Redwood City, CA, 94065
T +1 650 628-1500
Sector Communication Services
Industry Electronic Gaming & Multimedia
Most Recent Earnings Mar 31, 2021
Fiscal Year End Apr 2, 2022
Stock Type Slow Growth
Employees 11,000

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