Wall Street analysts predict game publisher Ea to hit earnings targets due to vacation sales of first-person shooter parcel four and football game sim FIFA 14.

Redwood town, Calif.-based EA, one in all the largest and oldest game publishers within the business, reports earnings for its all-important business third quarter concluded Dec. thirty one when the market closes these days. Analysts and investors area unit closely observation the quarter, because it could be a bellwether for sales of the multibillion dollar industry’s next-generation consoles (Xbox One and PlayStation 4) and includes the primary vacation sales season underneath new chief govt Apostle Wilson.

Arvind Bhatia, Associate in Nursing analyst at Ray Young, calculable that Ea is on the right track to satisfy each quarterly earnings targets and full-year yr targets furthermore. Overall, a accord of analyst estimates shows Ea is anticipated to report non-GAAP revenues of $1.65 billion and earnings per share of $1.23, compared with revenue of $1.18 billion and earnings pre share of fifty seven cents a year past.

Bhatia believes that Titanfall, a mech shooter game kicking off on March eleven from Ea and developer Respawn recreation, has had robust preorders and can drive ends up in subsequent quarter. He notes that NPD physical retail sales information isn’t a decent predictor of Ea results as a result of forty p.c of EA’s revenue currently comes from digital sources, like its Origin on-line store. however withal, NPD sales for Ea looked smart in December.

He thinks that Ea can take pleasure in the next-generation console refresh cycle, a positive combine toward additional digital revenues, and additional value controls. He believes that Ea is anticipated to create parcel, that had extensive on-line property issues throughout the vacations, Associate in Nursing annual launch franchise very like its rival, decision of Duty from Activision.

Meanwhile, Colin Sebastian of RW Baird same that the approaching quarters area unit vital in terms of Xbox One and PlayStation four sales, that area unit returning off a powerful fourth calendar quarter. which impacts corporations like Ea.

” With lots of cyclic  risks still ahead, there's conjointly a huge chance if Sony and Microsoft will withstand the onslaught of mobile devices and therefore the inevitable increase in front room competition from Apple and Google,” Sebastian wrote in a very analysis note. “We forecast roughly seven p.c growth in interactive recreation software system, packaged  and digital, in 2014 fast from flat sales in 2013.”

His favorite choose for the instant is Activision. however he expects EA’s quarterly reports to be in line with steerage, driven by FIFA 14 additional therefore than parcel four.

Adam Krejcik of Eilers analysis wrote that there has been worry that Ea would miss its targets and cut its full-year steerage thanks to a difficult retail sector and technical problems with parcel. He still expects Ea to match steerage and accord targets, with robust growth in each physical retail and digital game sales.

He noted that the hardware sales for the PlayStation four (4.2 million units shipped in) and therefore the Xbox One (3.9 million units shipped in) area unit robust, which the whole by the top of the primary calendar quarter ought to exceed ten million units.

And archangel Pachter, Associate in Nursing analyst at Wedbush Securities, wrote, “After a troublesome begin to the quarter, we tend to expect Ea to limp to steerage as a result of parcel 4′s endurance and therefore the positive impact of the next-generation console launches.” He expects revenue of $1.675 billion and earnings per share of $1.23. He same that Madden NFL twenty five and FIFA 14 conjointly saw a carry from the next-generation console sales. Digital revenues area unit expected to be near $1 billion within the quarter.

For the total year, he expects non-GAAP revenue of $4.0 billion and earnings per share of $1.25 FIFA 14 PS3 Coins. He noted, “EA has the lineup to deliver revenue and EPS growth for a minimum of subsequent 2 years.”

In the returning year, Ea can launch titles like UFC, FIFA tournament, Dragon Age: revolt, and another shooter. And in yr 2016, he expects parcel to come back in conjunction with Mirror’s Edge two and Star Wars titles underneath license from film producer.