For Immediate Release
Chicago, IL – September 8, 2010 – Zacks.com Analyst Blog features: Electronic Arts (ERTS), Dolby Laboratories Inc. (DLB), Activison Blizzard (ATVI), Take-Two Interactive Software Inc. (TTWO) and BB&T Corp. (BBT ).
Get the most recent insight from Zacks Equity Research with the free Profit from the Pros newsletter: http://at.zacks.com/?id=5513
Here are highlights from Tuesday’s Analyst Blog:
EA Adds New Technology
A leading developer and publisher of video games, Electronic Arts (ERTS) studio –Black Box is adding Dolby Laboratories Inc.'s (DLB) Dolby Axon voice chat technology to its hugely popular multiplayer online (MMO) racing action game – Need for Speed World.
Dolby Laboratories is a leading provider of high quality audio and surround sound technology. Axon voice chat technology ensures noiseless and echoless communication among team members. Players can chat using any stereo headset, stereo speakers and 5.1 playback systems.
Black Box Studio (the developer of Need for Speed World) had announced to incorporate the technology before the holiday season. The game, which is scheduled to release in second quarter ending September, 2010 will be available exclusively on personal computers (PC).
We believe this new sound feature will spice up the racing game and deliver a unique experience to players. In our opinion, the recently released Madden NFL 11 and the upcoming Need for Speed will drive top-line growth in the second quarter ending September 2010.
Social gaming has gained massive popularity because of the significant increase in internet usage attributable to a rapid growth in the use of Internet. Casual games on social networking sites such as Facebook have gained millions of users because one can start playing them instantly and they are incredibly easy to operate.
This mammoth success of online and social gaming is expected to have a major impact on gaming companies, as they prepare themselves for transition to Internet based gaming as compared to the conventional gaming.
In June, Electronic Arts signed a major deal with the online video streaming company Gaikai Inc. Gaikai, through its server based cloud computing technology allows users to play major PC and console games without any downloading or installation.
The Gaikai deal will enable worldwide game players’ access to Electronic Arts titles such as The SimsT, Medal of Honor and Need for Speed and other titles straight to any Web browser.
Electronic Arts continues to maintain its innovativeness and the superior quality of its video games. Despite a reduced title slate, which went from 10 in the first quarter of 2010 to 6 in the recently concluded first quarter of 2011, Electronic Arts reported revenue of $815.0 million, well above $644.0 million recorded in the prior-year quarter.
We believe Electronic Arts has a strong pipeline of products such as Medal of Honor, Dead Space 2, Need for Speed, Hot Pursuit and Crysis 2 in the second half of 2010, which is expected to drive its top-line growth in the coming quarters.
However, Electronic Arts faces stiff competition from Activison Blizzard (ATVI), Take-Two Interactive Software Inc. (TTWO) and privately held Sony Online Entertainment LLC, which compels us to maintain a neutral recommendation on a long-term basis (6-12 months). Currently, Electronic Arts has a Zacks #3 Rank, which implies a Hold rating on a short-term basis.
BB&T Downgraded to Underperform
We have downgraded our recommendation on BB&T Corp. (BBT ) to Underperform from Neutral. The rating change in based on deteriorating credit quality and concerns related to rising non-interest expenses.
BB&T’s second quarter 2010 operating earnings of 33 cents per share were in line with the Zacks Consensus Estimate. However, operating earnings were favorable compared to the prior quarter and prior-year quarter. Including merger related expense of 3 cents, earnings stood at 30 cents.
Second quarter results were supported by a lower provision for credit losses, strong fees and commissions, improved insurance income and moderate growth in net interest income along with an increase in average client deposits. However, higher non-interest expense and weakness in mortgage banking operations were among the negatives.
BB&T has a significant exposure in residential mortgage loans, direct retail residential loans, sales finance and revolving credit loans. So we remain concerned regarding an increase in the provision for credit losses from these loans in the near- to mid-term, given the current challenging housing market conditions.
The company continued to experience significant credit deterioration in the last few quarters largely due to challenges in residential real estate markets, with the largest concentration of credit issues occurring in Georgia, Florida, and metro Washington, D.C. Thus, credit quality remains a major concern for the company.
Want more from Zacks Equity Research? Subscribe to the free Profit from the Pros newsletter: http://at.zacks.com/?id=5515.
About Zacks Equity Research
Zacks Equity Research provides the best of quantitative and qualitative analysis to help investors know what stocks to buy and which to sell for the long-term.
Continuous coverage is provided for a universe of 1,150 publicly traded stocks. Our analysts are organized by industry which gives them keen insights to developments that affect company profits and stock performance. Recommendations and target prices are six-month time horizons.
Zacks "Profit from the Pros" e-mail newsletter provides highlights of the latest analysis from Zacks Equity Research. Subscribe to this free newsletter today: http://at.zacks.com/?id=5517.
About Zacks
Zacks.com is a property of Zacks Investment Research, Inc., which was formed in 1978 by Leonard Zacks. As a PhD in mathematics Len knew he could find patterns in stock market data that would lead to superior investment results. Amongst his many accomplishments was the formation of his proprietary stock picking system; the Zacks Rank, which continues to outperform the market by nearly a 3 to 1 margin. The best way to unlock the profitable stock recommendations and market insights of Zacks Investment Research is through our free daily email newsletter; Profit from the Pros. In short, it's your steady flow of Profitable ideas GUARANTEED to be worth your time! Register for your free subscription to Profit from the Pros at http://at.zacks.com/?id=5518.
Visit http://www.zacks.com/performance for information about the performance numbers displayed in this press release.
Follow us on Twitter: http://twitter.com/zacksresearch
Join us on Facebook: http://www.facebook.com/home.php#/pages/Zacks-Investment-Research/57553657748?ref=ts.
Disclaimer: Past performance does not guarantee future results. Investors should always research companies and securities before making any investments. Nothing herein should be construed as an offer or solicitation to buy or sell any security.
Contact:
Mark Vickery
Web Content Editor
312-265-9380
Visit: www.zacks.com
ACTIVISION BLZD (ATVI): Free Stock Analysis Report
DOLBY LAB INC-A (DLB): Free Stock Analysis Report
ELECTR ARTS INC (ERTS): Free Stock Analysis Report
TAKE-TWO INTER (TTWO): Free Stock Analysis Report
Zacks Investment Research
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
