Electronic Arts (EA) Stock Closed Higher Today After CFO Operating Margin Goal Comments
BY Sebastian Silva Follow
12/03/14 – 04:31 PM EST
NEW YORK (TheStreet) — Shares of Electronic Arts (EA) closed up 5.41% at $45.99 after CFO Blake Jorgensen said the company was reaching its previously-outlined 20% operating margin goal well ahead of time with « further runway ahead », according to Credit Suisse, who hosted the video game software company at their Annual Technology Conference yesterday.
Jorgensen indicated that further opportunities remain from « a confluence of continued gross margin expansion from the mix shift to digital downloads, as well as additional cost cutting to be realized from refocusing the marketing mix towards online channels, » analysts said.
« We come away increasingly convinced in our long-term investment thesis as EA reiterated its intent to redeploy the playbook for FIFA to its other key franchises in terms of a shift away from physical disk sales and into multiple product lines (free to play, mobile, live services), » Credit Suisse analysts added.