Boston, MA 05/08/2014 (wallstreetpr) – Electronic Arts inc. (NASDAQ:EA) shares continue to rise in the market after the company posted solid profit levels for the quarter that surpassed margins registered in the past two decades. Investors are once again confident and buoyed that the company is on the right turnaround strategy under its current Chief Executive Officer, Andrew Wilson. The video game publisher saw its fourth quarter earnings excluding some item’s clock in at 48 cents a share easily beating estimates of 11 cents on average that had been proposed by 23 analysts.
Wilson Efforts Bearing Fruits
Wilson seems to have finally found the magic that has essentially worked in transforming the company’s sales making it a leader in the video gaming industry. Solid results for the quarter caped a fine quarter in the year as Electronic Arts strives to become a top provider of titles sold online. Wilson seems to be outperforming his predecessor John Riccitiello who was ousted after consecutive earnings disappointments.
Collin Sebastian an analyst at Baird & Co. is of the opinion that Electronic Arts inc. (NASDAQ:EA)’s management is making impressive strides towards beating growth and margin goals. Improvements are already bearing fruits on the digital and mobile growth platforms. Digital is already turning out to be the main point of focus for Electronic Arts with 45% of sales coming from the segment.
Strong Console sales Driving Growth
Electronic Arts continues to benefit from strong console titles from industry Giants such as Microsoft with its Xbox one and Sony Corp’s Play Station 4. Net income as a result of the turnaround being led by Wilson surged by 14% in the quarter to $367 million. The company looks set to perform even better in the coming months seen by Analyst Collin Sebastian upgrading his target share price of the company to $37.
More people are now playing mobile games seen by a 6% increase in revenue from this space with sales for video game titles of Xbox one and PlayStation 4 Consequently surging from $24 million to $172 million. Digital revenue now accounts for 60% of Electronic Arts total revenue. Electronic Arts inc. (NASDAQ:EA) is now well positioned to initiate a $750 million share buyback program.
