Titanfall is expected to hit 2.4 million units shipped during EA’s fiscal fourth quarter, according to estimates from Robert W. Baird & Co. analyst Colin Sebastian.
Speaking in a industry note, Sebastian discussed meetings with EA management, and found the firm on a better course financially.
“Near term, we are adjusting estimates to assume 2.4 million sell-in of Titanfall in F4Q with CY2014 total shipments of 6 million units,” he said.
“Our cautious view of EA in prior years was originally based on inconsistent financial performance, and a comparatively inefficient cost structure. In becoming more constructive on the stock earlier in 2013, we recognized management’s renewed focus on expense management together with a more realistic approach to guidance. Moreover, EA has now achieved a number of important financial, product and executive milestones, and we believe is generally on a better course.”
Sebastian said he expects EA’s FY15 guidance will still be “overshadowed” by declines in current-gen software; however, with EA’s “broad support for next-gen consoles,” positions the company well should hardware sales continue to rise.
For the year, he expected EA’s top line to benefit from Dragon Age, UFC, FIFA and Sims franchises, which will be offset by “lower expected sales of Battlefield.”
The analyst said EA’s FY16 “has the potential to be a breakout year” thanks to the next Battlefield title as well as the new Star Wars franchise, and next-gen console platforms “reaching critical mass.”