More from Pachter on EA: 2007 may be good for EA
Webush Morgan Securities analyst Michael Pachter has yet again released a note to investors about his expectations for videogames giant Electronic Arts. In it he says that despite the fact that the publisher did not sell as much games this holiday season as the year before it, he believes that things are looking up for them. Even if EA did not make much from game sales, Pachter said the publisher is still well situated to meet or beat its own revenue expectations thanks to a few factors.
First, the recently concluded holiday season is the first one for which EA acquisition Jamdat will have an effect on the parent company. Noting the mobile game publisher’s US$ 35 million contribution to EA’s coffers, Pachter estimates that it will add about US$ 40 million to the company’s third-quarter tally.
The analyst also expects EA to reap about US$ 35 million in additional revenue as a result of the British pound and the Euro gaining strength against the US dollar.
Finally, Pachter believes EA could further improve its revenue figures by adjusting its reserves – the money it sets aside to cover price cuts and returns on unwanted inventory. Depending on how much EA decides to funnel into its reserves, Pachter estimates that EA can increase earnings for the quarter by around US$ 35 million to US$ 90 million.
Pachter expects that EA will announce its third-quarter results early next month.
For more of what Pachter thinks 2007 will look like for the business side of gaming, you can click here.
Via Gamespot
Webush Morgan Securities analyst Michael Pachter has yet again released a note to investors about his expectations for videogames giant Electronic Arts. In it he says that despite the fact that the publisher did not sell as much games this holiday season as the year before it, he believes that things are looking up for them. Even if EA did not make much from game sales, Pachter said the publisher is still well situated to meet or beat its own revenue expectations thanks to a few factors.
First, the recently concluded holiday season is the first one for which EA acquisition Jamdat will have an effect on the parent company. Noting the mobile game publisher’s US$ 35 million contribution to EA’s coffers, Pachter estimates that it will add about US$ 40 million to the company’s third-quarter tally.
The analyst also expects EA to reap about US$ 35 million in additional revenue as a result of the British pound and the Euro gaining strength against the US dollar.
Finally, Pachter believes EA could further improve its revenue figures by adjusting its reserves – the money it sets aside to cover price cuts and returns on unwanted inventory. Depending on how much EA decides to funnel into its reserves, Pachter estimates that EA can increase earnings for the quarter by around US$ 35 million to US$ 90 million.
Pachter expects that EA will announce its third-quarter results early next month.
For more of what Pachter thinks 2007 will look like for the business side of gaming, you can click here.
Via Gamespot
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