ALL you guys on this board seem pretty well informed when it comes to this stock. Based on the way it's traded over the last several months, whta do you think happen after earnnings? How did it perform after it's last earnnings? Are the analyst usually on this one or are they wrong more than right? I do not own it, but it jumped up on my chart yesterday and i know earrnings are out tonight Please help.........
Re: <<By anybody's definition, ERTS is overvalued. Unless they beat estimates by 50% or something like that today. Then they are only mildly overvalued..>>
Not by my definition - I thought 60 was about a fair price before earnings. Given that they beat estimates by 40% (does that count? ;-) and upgrades are sure to follow tomorrow, higher seems quite possible. Of course, with this stock prognostication is a fools' art - I clearly recall peeing in my pants 2 days ago when we were 53 something.
By anybody's definition, ERTS is overvalued. Unless they beat estimates by 50% or something like that today. Then they are only mildly overvalued but worth it because they are the industry leader and their mgmt is top notch.
Typically after earnings (no matter how good/bad) ERTS drops. Typically anyway, not always. Q1 is going to be tough for EA and they know that. They know a lot. They know more than anybody in the industry, even more than Rab if you can believe that (don't worry about him, he just likes to focus on the negative instead of the positive).
Anyway, knowing this, I'm hoping they have a big announcement beyond strong earnings, maybe something in M&A or a stock split, or even increased guidance for next year, who knows?
As for earnings, they'll certainly meet the number, probably beat it by about 10-20% minimum which would put them in the .31-.34/share range. Just my 2-cents.
looking at the estimates on yahoo, they came down significantly from previous estimates; yet the stock price is holding up. Am I reading this wrong? 30 cents doesn't seem like alot considering this is ERTS "boom" cycle? thanks
Well normally I think it would tank after failing to blow away expectations because even beating them slightly isn't enough to justify this valuation. However this quarter is different because there's so many catalysts they can discuss which should prop the price up (E3, console price reductions, Earth and Beyond, Sims Online, LOTR, etc. etc.). They'll cough and shuffle their feet if asked about MCO and other online efforts but they should be able to divert attention away from those failures easily with the fawning analysts who ask the soft questions.