Analyst Savages "Serial Over-Promiser" Electronic Arts
"Stay away from ERTS unless you’re feeling lucky, real lucky", says voice of finance
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.
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.
Companies:
Electronic Arts
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Comments
PreciousRoi 9 Feb 2010 15:59
1/1
So its the analyst's fault that EA has consistently overestimated or exaggerated its expected earnings and he is now skeptical of what might appear to be a rather obvious tactic? He sounds like hes talking all kinds of sense to me...or are we expected to be so devoted to gaming and the gaming industry that any negative information is met with spluttering outrage?