Tag Archives: Lazard Capital
Tue, Apr 12, 2011 | 02:50 BST
Analysts have predicted that 500,000 3DS consoles were sold in the handhelds first five days on sale in the US, but also that sales have dropped off markedly.
Mon, Dec 08, 2008 | 12:21 GMT
Lazard Capital’s Colin Sebastian’s significantly dropped his outlook on EA, saying several holiday franchises are tracking lowere than expected and that more cost-cutting is likely to be announced in the coming quarters.
“Specifically,” he said in a note this afternoon, “we believe several EA titles are tracking below plan at retail this holiday, including Need for Speed Undercover (with disappointing reviews), new franchise Mirror’s Edge, and Rock Band 2. Solid sales of Dead Space, FIFA 09, and Left4Dead are helping to offset the weaker titles, in our view.”
The analyst reduced his Q3 revenue estimate from $2.07 billion to $1.23 billion.
“We believe further cost and franchise reductions are likely,” he added.
“Importantly, we believe EA is continuing to review its cost structure and franchise base, and it is possible that management will announce further cuts in headcount and the development pipeline (including existing franchises) over the coming quarters.”
Tue, Aug 12, 2008 | 09:38 BST
It’s NPD week! Lazard Capital’s Colin Sebastian just issued a note saying the firm expects Wii sales to have dropped in the US last month, although the doomsayer may have to wait for their “I told you so” moment for a while yet.
“We believe a sequential decline in Wii sales is possible in July, and would indicate a pre-holiday inventory build rather than a demand issue,” said the analyst. “We also note that the console appears to be in stock at many overseas retail locations.”
Sebastian went on to predict that we can expect hardware “enhancements” to both PSP and DS this year.
“We expect a number of meaningful hardware announcements this fall, likely to include price cuts on the Xbox 360 and enhancements to handheld systems from Sony (PSP) and Nintendo (DS),” he said.
NPD results are out this Thursday, August 14.
Wed, Jul 02, 2008 | 12:36 BST
Lazard Capital’s Colin Sebastian has dropped his price target on EA from $58 to $55.
“While we continue to believe that EA will ultimately benefit from improving execution and better product momentum in 2HF2009, we believe ongoing margin pressures and lack of R&D leverage limit near-term upside in the shares,” said the analyst in a note this afternoon.
Sebastian did, however, raise his revenue estimate on the firm based on what appears to be strong demand for Spore.
“We are encouraged by solid game ratings of several new titles from EA, and there are positive early signals of interest for key F2Q release Spore, with roughly 1.4 million uploads to date
using the Creature Creator,” he said. “Based on solid quarter-to-date sell-through data (driven by Rock Band), we are increasing our F1Q revenue estimate slightly to $630M (+46% year-over-year) from $600M.”
Wed, Jun 11, 2008 | 22:55 BST
Buy buy buy. Wedbush Morgan’s Michael Pachter just raised his rating on Activision from buy to strong buy ahead of an expected approval of the firm’s merger with Vivendi on July 8.
The analyst issued a first target for the 12 months ending Dec 2009 of revenue at $5.26 billion and pro forma EPS of $1.50.
Lazard Capital’s Colin Sebastian also issued a note this afternoon raising the firm’s price target to $40 from $33.
“We believe the transaction is set to create a formidable new digital media powerhouse and the most valuable interactive entertainment company worldwide, unlocking the value of industry juggernaut World of Warcraft, and possibly also setting a new benchmark for profit margins among publicly traded video game pure-plays.”
Tue, Jun 10, 2008 | 07:35 BST
Lazard Capital’s Colin Sebastian said this morning that while he expects a 360 price drop this year in the $50 region, a PS3 cut is not expected.
“We continue to expect Xbox 360 price cuts this year (~$50 reduction), while Sony appears content to focus on achieving PlayStation profitability at the current PS3 price points,” the analyst said in a note ahead of May NPD data this week.
Sebastian said last month that he didn’t expect to see a drop on PS3 in the US in 2008, this new statement being a reiteration of the message a month previous.
Thu, May 15, 2008 | 09:10 BST
Lazard Capital’s Colin Sebastian just issued a note on last night’s EA financials saying that news on the company’s proposed buyout of Take-Two can be expected next Monday.
“Expect update on TTWO bid by Monday morning,” he said. “We continue to believe that the current offer of $25.74 per share would be accretive to earnings for Electronic Arts, as well as fill several meaningful product gaps.”
If this is the news many expect it to be, expect a force 65 netplosion early next week.
The analyst is maintaining a “buy” rating on EA’s stock and a target of $58 on a current price of $54.57.
Wed, Apr 16, 2008 | 15:00 BST
Lazard Capital’s Colin Sebastian has predicted a 35 percent increase in March US sales year-on-year ahead of tomorrow’s NPD data.
“We estimate video game software sales increased 35%+ in March. NPD is scheduled to release video game sell-through data tomorrow afternoon,” he said in a research note. “Based on our retail and industry checks, we expect software growth to meet, and perhaps exceed, our original 35% estimate with the Easter/spring break shift boosting a solid release schedule, which included Super Smash Bros. Brawl (Nintendo), Rainbow Six: Vegas 2 (UbiSoft) and Army of Two (ERTS).”
Sebastian’s prediction follows Michael Pachter’s note yesterday that he expects a 47 percent increase for March.
Tue, Apr 08, 2008 | 08:39 BST
Lazard Capital’s Colin Sebastian just published a note saying he expects next week’s March NDP data to show a heavy sales rise for the month.
“We estimate 35 percent growth in March software data,” he said. “Next week, NPD is scheduled to release industry sell-through data for the month of March. We believe software sales benefited from several strong new title releases, catalog sales of titles such as Call of Duty (ATVI) and Rock Band (MTV/ERTS), the shift of the Easter holiday into March (from April last year), earlier spring breaks, and improving PS3 hardware sales.”
He added: “Industry sales trends remain positive into Spring. Our retail and industry channel checks indicate that video game selling trends remain positive through early April. Specifically, we believe there is little spillover into the video game market from overall consumer spending weakness, and that key software releases have sold well, including Super Smash Brawl (Nintendo), Rainbow Six: Vegas 2 (UbiSoft), and Army of Two (ERTS).”
We love NPD data. It’s our favourite time of the month. Give us some American sales figures, right now.