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WMS: EA Set to Beat Q3 Guidance

EA's stock has been down over the last few weeks because of investor uncertainty, but Wedbush Morgan Securities says the mega-publisher will beat its third quarter guidance and market watchers' expectations.

WMS analyst Michael Pachter wrote in a note to investors that EA shares have been down nearly 15 percent over the last six weeks due to concerns that the company would report quarterly results below the market consensus of $1.272 billion in revenue.

EA's guidance for the third quarter ended December 31 forecasts revenues of $1.2-$1.3 billion.

Despite market uncertainty, Pachter said that EA is "not only highly likely to meet consensus estimates, but is highly likely to exceed such estimates."

The analyst said that EA is set to "modestly beat" WMS' estimate of $1.3 billion in revenues for the quarter; the high-end of EA's guidance. Contributions from mobile gaming arm JAMDAT and foreign currency transition gains are expected to bring Q3 sales to $1.31 billion.

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