EA “Missed the Current Hardware Cycle”
In a recent report, analysts at the Cowen Research firm have denounced EA’s claims of making a profit. They claim that EA has “missed the current hardware cycle”, and that they won’t record enormous profits “anytime soon”. Here’s what the firm had to say:
“We believe that following serial earnings disappointments, Electronic Arts now deserves a lower valuation premium than the company has historically enjoyed.
Since management first laid out its initial full year 2010 guidance and full year 2011 long-term guidance in February 2008, the company has failed to deliver on its earnings targets and has been forced to repeatedly revise down its guidance. Given this historical record, we do not think investors should place too much faith in management’s current guidance.”
In fact, Cowen analysts have so little faith in EA, they are reducing their 2011 profit expectations significantly. Their original year-on-year profit share increase projection was 48.7%; now it’s a dismal 24%.
[Source]
4 Responses to “EA “Missed the Current Hardware Cycle””
dead space was good, other than that I can’t think of an EA title I like.
Cowen shmowen, if you put out junk people won’t buy it, and your company makes less money.
People make games, not companies, if you take all the profit the people move on and start their own company., or burn out.
/Just stating the obvious now over.
Blah, blah, blah. Sorry EA
too bad.