You might have stumbled across talk regarding Electronic Arts stocks plummeting, right? Well, a lot of companies are facing stock decline. However, EA also has a dying product for PC, PS4, and Xbox One on hand that happens to be the infamous Battlefield V, which helped EA to revise its projected 2019 revenue during this stock decline.
Yes, it is true that a variety of companies like Amazon, Walmart, Ubisoft, Take-Two, and EA stock are very low as of this writing (and in past months), but it isn’t good when you have a controversial product on hand like Battlefield V that continues to disappoint.
In addition to the hemorrhaging WW2 FPS title, we learn from publication site seekingalpha.com that because Battlefield V suffered from consumer backlash due to the product being a revised portrayal of WWII with injected current year politics nestled within, the less than stellar nature of BFV’s launch/promotional campaign, and poor sales leading to most major retailers selling the title on sale for 33% to 50% off has led to a bad position.
Right after the Cowen analyst and CNBC report surfaced regarding Battlefield V pre-order sales being weak, EA revised FY 2019 net bookings guidance from $5.55 billion to $5.20 billion. Although that was some months ago, EA is also dealing with shares dropping off around 45% after a peak in July, which is a new low for the company’s financial year.
Furthermore, ever since August, analysts have reduced fiscal third quarter 2019 revenue expectations from over $2.2 billion to under $1.8 billion. The company guidance for the entire year was reduced by $350 million to account for “exchange rates,” “lower mobile expectations,” and the delay of Battlefield V‘s launch.
It is said that analysts are factoring additional declines due to slower sales for EA’s “key holiday franchise” better known as Battlefield V, where the publication site notes that analysts are likely “underestimating the shortfall versus the 13-million-unit forecast.”
In addition, seekingalpha.com believes as hard sales data comes forward in January “additional downward revenue revisions from analysts and corresponding pressure on the stock price” are expected to surface.