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Rap Sheet

Author:

Jester Debunker

Subject:

Off Topic

Date:

06/19/15 at 10:50 AM CDT

 

 

READ: 7

RPLY: 1

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Sentiment:

Neutral

Brean and Wedbush pumping EA

Brean and Wedbush pumping EA. They say Star Wars estimates and earnings estimates are conservative (which should already be a given considering analyst ests are currently higher than EA's guidance). I guess they're not concerned about the lack of single player campaign, or that the analyst estimates for Titanfall (also an MP focused game) were far higher than actual sales. Last year Wedbush forecasted over 10M sales for Titanfall! EA has never been brave enough to talk sales, but I see VGChartz has it at 4.33M, which includes many units at discounted prices. Truly, these guys are the execs best friends.

The forward P/E has risen from 16 in May 2014 to 24 today, how much higher can that go? Wouldn't higher Star Wars sales have a slightly negative effect on margins, due to high license fees? Meanwhile, the execs have sold $72M in the last 6 weeks and the CEO and others have opened trading plans to sell more.

finance.yahoo.com/ne...9.html

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