من موقع briefing
ERTS is expected to report Q1 results today, after the market closes, with analysts expecting EPS of ($0.24) on revs of $336.57 mln. Wedbush believes that the co is likely to significantly beat its Q1 rev guidance. However, firm expects investment in research and development to be high during the quarter, and that the co will beat its earnings guidance only modestly and increase FY:07 guidance slightly. Firm thinks that ERTS' FY:07 guidance is conservative (revs of $2.7-2.95 bln and pro forma EPS of $0.35-0.65 (excluding $0.50/share in charges)) and they think that the co is likely to consistently deliver upside to expectations. Accordingly, firm expects share price appreciation over the next six months. Firm also views the next generation console launches for Wii (Q4) and PS3 (November) as catalysts for the group, and in particular ERTS, which is expected to have a significant launch presence on each console. Kaufman expects results to be inline with managements guidance. Firm expects EPS of ($0.25) on revs of $327 mln. Firm expects operating margins to rise modestly vs. a year ago, due to a relatively large percentage of internally developed I.P. in the mix, but this should not be enough to overcome lower sales. Firm believes the video game cycle is bottoming out. AmTech expects an in-line June Q and in-line guidance for September. Firm maintains their stance that expectations have been lowered for the video game publishers, and will rise as they get closer to the next-gen hardware consoles