FeedPosted Feb 6th 2010 2:10PM by Steven Mallas (RSS feed)
Filed under: Earnings Reports, Forecasts, Microsoft (MSFT), Sony Corp ADR (SNE), Electronic Arts (ERTS), Activision Inc (ATVI), Nintendo (NTDOY)
Electronic Arts (ERTS), a software maker whose colleagues include Activision Blizzard (ATVI), Microsoft (MSFT), Nintendo (NTDOY) and Sony (SNE), will be reporting third-quarter numbers on Monday, Feb. 8, after the market closes up shop. This is going to be an interesting one.
I doubt there are many market watchers out there who aren't aware of the problems in the video game industry; 2009 was not the best of years for the sector, and investors are hoping that 2010 will execute a rebound. However, EA has specific fundamental problems. The declines seen in its share price cannot be solely sourced to the macro conditions of the current console cycle.
Continue reading Electronic Arts to Report Q3 Data: Should You Play This Game?
Posted Jan 30th 2010 12:10PM by Trey Thoelcke (RSS feed)
Filed under: Earnings Reports, Microsoft (MSFT), Yahoo! (YHOO), Apple Inc (AAPL), Cisco Systems (CSCO), Ford Motor (F), Halliburton (HAL), Boeing Co (BA), Mattel, Inc (MAT), US Airways Group (LCC), Eastman Kodak (EK), U.S. Steel (X), QUALCOMM Inc (QCOM), Texas Instruments (TXN), Nintendo (NTDOY)
Here are some highlights from this past week's earnings coverage on BloggingStocks:
- Apple Inc. (AAPL) posted its highest quarterly revenue ever, easily beating estimates, as iPhone sales doubled.
- Boeing Co. (BA) swung to a larger-than-expected Q4 profit but guidance fell short of analysts' estimates.
- Chevron Corp. (CVX) fell short of analysts' earnings estimates for Q4, sending shares lower.
- Cisco Systems Inc. (CSCO) shares rose after optimistic statements by the CEO ahead of Q2 results.
- Eastman Kodak Co. (EK) shares surged after it beat Q4 expectations by a wide margin and cash flow improved.
- Ford Motor Co. (F) reported its first annual profit in four years due to cost-cutting and improved market share.
- Halliburton Co. (HAL) reported lower Q4 earnings but beat estimates by a penny, and revenue also fell.
Continue reading Earnings Highlights: Apple, Boeing, Cisco, Ford, Kodak, Microsoft, Yahoo! ...
Posted Jan 7th 2010 3:15PM by Steven Mallas (RSS feed)
Filed under: Wal-Mart (WMT), Nintendo (NTDOY)
Have you ever had one of those days? Yeah, you've had 'em. I'm having one right now. I cannot believe how wrong my thesis on GameStop (GME) turned out to be. Wrong, wrong, wrong.
I honestly thought things were going to be different today. The video-game retailer would report its holiday sales and I would see a pop in my shares. I would have the opportunity to sell out at a nice price above my cost basis. A cost basis, by the way, that had been severely challenged soon after I opened the position.
Continue reading Trade Update: GameStop -- An Absolute Nightmare
Posted Dec 28th 2009 11:30AM by Tom Johansmeyer (RSS feed)
Filed under: Microsoft (MSFT), Wal-Mart (WMT), Target Corp. (TGT), Black Friday, Nintendo (NTDOY)
The holidays have ended, and the real sales have begun. Those choosing to sacrifice sentimentality for savings found retailers only too willing to help, as prices were slashed in the wake of the Christmas rush. Recipients of gift cards stand to see their purchasing power extended, as well, now that redemption time has arrived, and retailers are looking to squeeze in any extra sales they can to pump up their top lines before the books close on the fiscal year, which, for many, comes at the end of January.
Toys "R" Us has offered a deal on Nintendo (NTDOY) Wii games, with the second coming at half price, and Target (TGT) is nearly halving the price of wine glasses and dropping the tag on an argyle women's sweater by nearly a third. Walmart (WMT), which kicked off its cuts at the end of September, is throwing a $50 gift card on top of any Microsoft (MSFT) Xbox 360 buy.
Continue reading After Christmas, Retailers Pick Up the Pieces
Posted Dec 18th 2009 9:00AM by Steven Mallas (RSS feed)
Filed under: Earnings Reports, Microsoft (MSFT), Sony Corp ADR (SNE), Electronic Arts (ERTS), Activision Inc (ATVI), Technology, Nintendo (NTDOY)
Take-Two Interactive (TTWO), a video game publisher whose competitors include Activision Blizzard (ATVI) and Electronic Arts (ERTS), actually held up well Thursday after the company issued its Q4 report. I was honestly expecting a sell-off after the news. Why? The video game industry just isn't popular these days, so I figured the market would have found some excuse to send the shares packing. To my surprise, Take-Two gained over 1.8% in the regular session and then another 3% in the after-hours following the release.
Revenues increased 6%, but the action was in the per-share profit line. On an adjusted basis, Take-Two brought home 9 cents per share versus 2 cents per share in the fourth quarter of 2008. But I don't think the market cared too much about the data. After all, guidance for Q4 had already been announced near the beginning of the month. At that time, the stock was punished for the bad outlook and the upcoming GAAP loss. And I mean really punished. It lost 30% of its value at one point.
Continue reading Take-Two Reports Much Higher Adjusted Income
Posted Nov 28th 2009 9:40AM by Steven Mallas (RSS feed)
Filed under: Microsoft (MSFT), Coca-Cola (KO), PepsiCo (PEP), Sony Corp ADR (SNE), Electronic Arts (ERTS), Activision Inc (ATVI), Nintendo (NTDOY)
I purchased two stocks this week. I hope I was correct in buying them. As we all know, the Thanksgiving holiday period isn't always the best time to purchase shares of companies since trading volume is usually low and price action might be misleading. Nevertheless, I did what I did, and I'll tell you why.
First up, I bought Coca-Cola (KO). Why did I buy some of PepsiCo's (PEP) major competitor? This was the easier of the two decisions. I have a long-term position in Coke, so I wasn't so worried about a little bad timing. I dollar-cost-average every dividend check back into the stake, thus improving my price basis each and every quarter.
Continue reading Two stock buys: Did I do the right thing?
Posted Nov 19th 2009 2:50PM by Steven Mallas (RSS feed)
Filed under: Earnings Reports, Microsoft (MSFT), Sony Corp ADR (SNE), Activision Inc (ATVI), Nintendo (NTDOY)

GameStop (
GME) posted what I thought was a mediocre
third quarter. Total sales went up about 8%, and earnings per share increased a few pennies to 31 cents. When you think video games, you think growth. That doesn't feel like growth, does it? Not the kind that sends a stock to the moon, certainly. Furthermore,
same-store sales saw a decrease of 7.8%, driven by lackluster hardware transactions. Indeed, we may be hitting a point in the console cycle where the demand for systems from Sony (
SNE), Microsoft (
MSFT), and Nintendo (
NTDOY) has essentially been satiated.
Here's the big question on the mind of traders: unimpressive Q3 or not, should GameStop be bought now?
Continue reading GameStop: Not the greatest quarter, but a buy nonetheless?
Posted Nov 15th 2009 10:00AM by Tom Johansmeyer (RSS feed)
Filed under: Internet, Google (GOOG), Microsoft (MSFT), Apple Inc (AAPL), Technology, Nintendo (NTDOY)
Morale has plunged among military personnel in Afghanistan as a result of record violence in the war, according to the U.S. Army. A battlefield survey found that the situation is particularly problematic for soldiers on their third and fourth combat tours, and junior enlisted soldiers are most likely to experience marital problems because of deployment. Though it's not a complete solution, the study did find that limited doses of technology – either through video games or internet access – can help.
The study, obtained by NBC News, revealed that more than 20% of soldiers are experiencing combat stress, and half of them are having difficulties getting professional help. Combat Stress units in Afghanistan, the report says, are "undermanned," and this type of unit has no presence in the southern part of Afghanistan, where most of the combat is taking place.
Continue reading Internet holds the answer to combat stress, but in small doses only
Posted Nov 10th 2009 3:20PM by Steven Mallas (RSS feed)
Filed under: Earnings Reports, Electronic Arts (ERTS), Activision Inc (ATVI), Technology, Nintendo (NTDOY)

While the big news today may be the release of Activision Blizzard's (
ATVI) new
Call of Duty title, there's other stuff going on in the world of video games for investors to ponder. Electronic Arts (
ERTS) issued its
Q2 report yesterday after the bell. The numbers weren't too bad, but the market was not excited at all by them, probably because it knows that EA still has a lot of work to do in terms of better positioning itself for the future.
Adjusted revenues were up a scant 2%. Earnings per share, excluding items, actually showed a profit of 6 cents. This was a lot better than the loss of 6 cents per share seen in the year-ago frame. The company also managed to generate a small amount of cash from operations in the quarter instead of using a whole bunch like it did last time around.
Continue reading Electronic Arts not popular with investors after Q2 report
Posted Nov 6th 2009 10:20AM by Steven Mallas (RSS feed)
Filed under: Earnings Reports, Sony Corp ADR (SNE), Electronic Arts (ERTS), Activision Inc (ATVI), Technology, Nintendo (NTDOY)
Activision Blizzard (NASDAQ: ATVI) published third-quarter results on Thursday after the bell. I can't say I was wholly taken with them. I know the best is probably yet to come once the Christmas shopping season really gets under way, but I was a little disappointed that the company saw a decline in adjusted profit.
Excluding items, Activision Blizzard made 4 cents per share this quarter versus the 7 cents per share made in last year's similar period. Well, did I say I was a little disappointed? Make that a lot disappointed. After all, this is supposed to be the publisher with the best pipeline on the block, the one with the Guitar Hero franchise and a great portfolio of licensed intellectual properties.
Continue reading Activision Blizzard's Q3: Am I right to be bearish?
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