On May 8, Motley Fool Stock Advisor pick and video game maker Electronic Arts
- Revenue dropped by 4.4%, mostly because of gamers' transition to next-generation systems.
- For Q1 2008, EA expects revenue between $300 million and $360 million, and a GAAP loss between $0.56 and $0.66 per share.
- For FY 2008, EA predicts revenue between $3.1 billion to $3.4 billion, and a GAAP loss of $0.23 to $0.77 per share.
- Electronic Arts currently earns three stars from our Motley Fool CAPS community, lagging behind fierce competitor Activision
(NASDAQ:ATVI) but still beating Take-Two Interactive(NASDAQ:TTWO) and THQ(NASDAQ:THQI) .
(Figures in millions, except per-share data.)
Income Statement Highlights
|
Q4 2007 |
Q4 2006 |
Change |
|
|---|---|---|---|
|
Sales |
$613.0 |
$641.0 |
(4.4%) |
|
Net Profit |
($25.0) |
($16.0) |
N/A |
|
EPS |
($0.08) |
($0.05) |
N/A |
|
Diluted Shares |
310.0 |
304.0 |
2% |
Get back to basics with the income statement.
Margin Checkup
|
Q4 2007 |
Q4 2006 |
Change* |
|
|---|---|---|---|
|
Gross Margin |
61.7% |
61.9% |
(0.3) |
|
Operating Margin |
(11.6%) |
3.9% |
(15.5) |
|
Net Margin |
(4.1%) |
(2.5%) |
(1.6) |
Margins are the earnings engine.
Balance Sheet Highlights
|
Assets |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Cash + ST Invest. |
$2,976.0 |
$2,432.0 |
22.4% |
|
Accounts Rec. |
$256.0 |
$199.0 |
28.6% |
|
Inventory |
$62.0 |
$61.0 |
1.6% |
|
Liabilities |
Q4 2007 |
Q4 2006 |
Change |
|---|---|---|---|
|
Accounts Payable |
$180.0 |
$163.0 |
10.4% |
The balance sheet reflects the company's health.
Cash Flow Highlights
|
Q4 2007 |
Q4 2006 |
Change |
|
|---|---|---|---|
|
Cash From Ops. |
$214.0 |
$337.0 |
(36.5%) |
|
Capital Expenditures |
$60.0 |
$36.0 |
66.7% |
|
Free Cash Flow |
$154.0 |
$301.0 |
(48.8%) |
Free cash flow is a Fool's best friend.
Related Foolishness:
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