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Electronic Arts Inc. was up 0.49% and changed hands at $83.87 as investors closely watched on the next quarterly earnings report scheduled on October 25, 2016. Shares of EA traded between the range of $83.3 to $84.45 before the earnings report.       

In essence, all eyes are on the game developer’s earnings estimate for September 2016, citing an expected quarterly earnings per share (EPS) of $0.43 per share with a revenue of $1.09B.

Meanwhile, company shares rallied by about 1.25% last week, in which 21 analysts collectively set a buy rating on the stock, and 17 have issued an average PT of $87.04 with individual targets between $75 to $105.   

Offload Stocks Weighs

Corporate insiders suggest a disappointing outlook on the company’s stock and offloaded shares after posting gains of 20.42 this year. EA’s CEO had sold shares in a trading session September 1, 2016.     

Investors Awaits Earnings Release

EA Inc is estimated to announce financial earnings on November 3, 2016, according to the most recent data. Investors will closely watch the number the company reports compared to the EPS that analysts forecast. In addition, the next fiscal year earnings release is set on May 9, 2017.  

Sell-side firms are expecting the company to post a quarterly EPS of $0.69 for the fiscal quarter ending on September 30, 2016. It shows that these numbers came from 13 analysts that issues estimates.    

Subsequently, EA Inc unexpectedly claimed about 42.86% factor amid the last quarter.

Previous EA Inc’s Earnings Release

The chart below illustrates EA response in last year’s earnings release for fiscal quarter ending September 2015, which was reported on October 29, 2015. Stock prices opened higher at 65.05 on October 12, which tried to break out on the upside nearly touching resistance 68.20, followed by a bullish trend in the next two sessions at 70.55 on October 14.

Meanwhile, the candlestick showed a slight decrease, but showed a supporting candle next, modestly soaring at 76.79 on October 28. However, on the day of the earnings release the stock price disappointed investors.

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The chart below also supports the possibility of EA’s stock price movement before the earnings release estimated on October 25, 2016. For the fiscal quarter ending December 2015, EA shares were also seen soaring before the scheduled report, which opened at 62.10 on January 6 and tried to break out on the upside at resistance 63.28.

Consequently, the candle awaited for a supporting candle which in fact did for a while, as stock prices begun consolidating next but still in a bullish movement. In essence, EA showed a rising window on January 22 and confirmed a significant high at 71.47.

Apparently, a day before the earnings release, the stock price already showed a decline move, followed by a sharp drop as results disappointed investors.

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Conclusion

The resilience in the outlook of EA seemed to get stronger by the bullish sentiment claimed by analysts.  

Thus, given a supporting data amid the previous earnings release of EA Inc., we concluded that stock prices would show a significant rally, but could decline on the scheduled release as investors could witness disappointing results.  

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