Analyst Savages "Serial Over-Promiser" Electronic Arts

EA's earnings announcement and analyst call is up and running from last evening in the USA. Already at least one analyst is telling investors to steer clear of the company.

In a harsh analysis, influential finance site Seeking Alpha's David Gibbs states that, "Serial over-promiser Electronic Arts may have under-delivered for the last time when it reported earnings for the December quarter Monday after the bell."

Gibbs then quotes unnamed sources stating that EA's conservative predictions for earnings in the next fiscal year contrasts with "the brazen forecasts that the company was known for". Not only that, but they may simply be a ruse.

Apparently, "management is merely trying to put themselves in a position to under-promise and over-deliver next time around."

He finishes his report by stating, "Be warned though. Trying to pick a bottom in stock selling off in a correcting market is a dangerous game and I wouldn’t recommend it. Stay away from ERTS unless you’re feeling lucky, real lucky."

Sounds to us very much like talking a company that's trying to turn things around right into the deck. Opinions? To the Forum.