Score Up to 20% on Electronic Arts’ Rally

EA hit a new 52-week high as it broke out of a bullish pennant

   

Score Up to 20% on Electronic Arts’ Rally

Electronic Arts (EA) — On May 6, this video game maker reported better-than-expected fiscal fourth-quarter earnings of $0.48 per share on revenue of $914 million. Analysts had only been expecting $0.11 on revenue of $812.4 million, and shares jumped 21% in one day.

Since that time, EA has been consolidating as Wall Street continues to digest good news. In addition to the $750 million share buyback program the company announced, it issued upbeat guidance for the upcoming quarter. Management said it expects revenue of $700 million and a loss of $0.05 per share versus analysts’ estimates of $632.7 million and a loss of $0.23 per share.

NPD Group announced that EA’s new first-person shooter gamed “Titanfall” was the best-selling game in the United States in April. EA also has gamers excited with its recently previewed FIFA 15 soccer game, due to be released this fall, and “Star Wars: Battlefront,” which is scheduled to come out in spring 2015.

EA hit a new 52-week high Tuesday, breaking out of a pennant bullish continuation pattern and closing near the high of the day. Based on the uptrending resistance level that has been in play since early December and the $8 price move the stock enjoyed before consolidating, we anticipate EA could easily move toward $43 based on the breakout point of the pennant at $35.

06 11 14 ea 300x169 Score Up to 20% on Electronic Arts' Rally
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Article printed from InvestorPlace Media, http://investorplace.com/2014/06/trade-day-electronic-arts-ea-stock/.

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