SADIF Analytics Assigns Negative Long-Term Outlook Rating to Electronic Arts Inc

Released on: October 31, 2008, 10:08 am

Press Release Author: SADIF Investment Analytics SA

Industry: Financial

Press Release Summary: SADIF-Investment Analytics SA has applied its StockMarks(tm)
stock-rating system to Electronic Arts Inc and produced a research report, rating
the company's attractiveness to long-term investors.

Press Release Body: Mira, Portugal - October 31, 2008 - SADIF Investment Analytics
SA, today announced the release of a new equity research report covering Electronic
Arts Inc (ERTS). The report utilizes SADIF's powerful StockMarks(tm) stock rating
system and is required reading for any current or potential Electronic Arts Inc
investor.

Report Summary: US-based video game company Electronic Arts reported disappointing
fiscal second quarter results on October 29th. The company reported a widening net
loss of USD 310M compared to a loss of USD 195M over the same period a year earlier.
Electronic Arts has not reported a net quarterly profit since February 2007. Rising
research and development costs as well as increased cost of goods sold were the
primary reasons behind the weakened results in the second fiscal quarter. Revenues
were up almost forty percent when compared to the same period a year earlier.
However, the results prompted Electronic Arts to lower its year-end earnings
estimates. The company also announced restructuring aimed at increasing
profitability, by cutting jobs in the US. The recent volatility in shares of
Electronic Arts points to the market uncertainty over whether the company will see
weak results in the coming holiday period as consumers tighten spending, or, if
consumers will latch on to video games as a relatively cheap form of entertainment.
Given EA's uncertain short-term outlook and the speculation surrounding the shares,
we should look to the company's long-term underlying fundamentals to aide us in our
investment decisions. We can assess EA's long-term performance through the use of
the StockMarks framework. EA currently has an overall long-term
investment-attractiveness rating (Total StockMark or SMT) of 26, placing the company
far below the US market average. This rating ranks EA ninth out of ten when compared
to nine of the company's closest US-listed peers, selected on the basis of both
similarity of business and market positioning factors such as size.

The complete report breaks down the Total StockMark into its three components -
Business, Management and Price, performing a thorough analysis of Electronic Arts
Inc for long-term investors.

A summary of the StockMarks(tm) ratings for Electronic Arts Inc is available here:
http://sadifanalytics.com/stockmarks/company.php?ticker=ERTS&cod_country=125

The report has been distributed to Reuters, and forwarded to Yahoo Finance and
FT.com. It is available under 'Analyst Reports' from these websites or directly from
SADIF-Investment Analytics SA at
http://sadifanalytics.com/stockmarks/article/hist_article.php?cod_country=125


About SADIF-Investment Analytics SA
SADIF-Investment Analytics SA is an independent investment research company covering
sixteen different markets and over 12,000 companies. Our StockMarks(tm) system is based
on proven investment principles and is designed to drive long-term shareholder
returns.


Web Site: http://www.sadifanalytics.com

Contact Details: Company: SADIF-Investment Analytics SA
Address: AIBAP,
Rua do Matadouro,
3070-436 Mira, Portugal
Phone Number: (+351) 231849038
Website: www.sadifanalytics.com
Email: press@sadifanalytics.com

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