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Shares of Electronic Arts (EA) popped more than 2%, after-hours, on the company's remarkable full-year results, ending March 2021. FY21 net bookings were up 15% year-over-year to $6.19 billion. The company has also confirmed a dividend offering following the impressive FY21 results.
Revenues in the fiscal year increased 1.66% year-over-year to $5.63 billion as the company posted a net income of $837 million or $2.87 a share. Operating activities provided net cash of $1.93 billion for FY21.
Electronic Arts delivered 13 new games as more than 42 million new players joined the network during the fiscal year. Furthermore, its Apex Legend game has more than 100 million players life to date on console/PC. Robust numbers indicated growing engagement in the company's games.
FY22 revenues are expected at about $6.8 billion and a net income of about $390 million.
CEO Andrew Wilson stated, “We’re now accelerating in FY22, powered by expansion of our blockbuster franchises to more platforms and geographies, a deep pipeline of new content, and recent acquisitions that will be catalysts for further growth."
Electronic Arts has also confirmed a quarterly dividend of $0.17 per share. The dividend is to be paid on June 23, 2021, to shareholders of record as of June 2, 2021. (See Electronics Arts stock analysis on TipRanks).
Baird Equity Research analyst Colin Sebastian stated “We remain optimistic on the interactive entertainment sector with multiple "disruptive" trends likely increasing the value of video game software. EA has a solid line-up of game franchises – both owned IP and licenses. EA remains one of the leading console, mobile and PC game publishers, with a strong base of recurring revenue streams”.
The analyst has reiterated a Buy rating on the stock with a $160 price target implying 13.19% upside potential to current levels.
Consensus among analysts on Wall Street is a Strong Buy based on 10 Buys and 2 Holds. The average analyst price target of $164.91 implies 16.66% upside potential to current levels.
EA scores 6 out of 10 on TipRanks’ Smart Score rating system, implying its performance is likely to align with market averages.
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