NEW YORK (TheStreet) -- Electronic Arts shares are down 1.36% to $48.80 in trading on Tuesday ahead of the release of the video game company's third quarter earnings results after the closing bell today. Analysts are expecting the company to report earnings of 92 cents per diluted share on revenue of $1.29 billion for the quarter. Last year the company reported earnings of $1.26 per share on revenue of $1.57 billion on an adjusted basis. Exclusive Report: Jim Cramer's Best Stocks for 2015 STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more. Analysts are expecting the company to report better holiday season numbers this year as next generation gaming consoles Xbox One and PS4, which were released in late 2013, have had over a year to find a foothold with gamers. TheStreet Ratings team rates ELECTRONIC ARTS INC as a Buy with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation: "We rate ELECTRONIC ARTS INC (EA) a BUY. This is driven by some important positives, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, compelling growth in net income and good cash flow from operations. Although no company is perfect, currently we do not see any significant weaknesses which are likely to detract from the generally positive outlook." Highlights from the analysis by TheStreet Ratings Team goes as follows: The revenue growth came in higher than the industry average of 26.1%. Since the same quarter one year prior, revenues rose by 42.4%. Growth in the company's revenue appears to have helped boost the earnings per share. EA's debt-to-equity ratio is very low at 0.22 and is currently below that of the industry average, implying that there has been very successful management of debt levels. Along with the favorable debt-to-equity ratio, the company maintains an adequate quick ratio of 1.35, which illustrates the ability to avoid short-term cash problems. Powered by its strong earnings growth of 101.12% and other important driving factors, this stock has surged by 104.22% over the past year, outperforming the rise in the S&P 500 Index during the same period. Turning to the future, naturally, any stock can fall in a major bear market. However, in almost any other environment, the stock should continue to move higher despite the fact that it has already enjoyed nice gains in the past year. The net income growth from the same quarter one year ago has significantly exceeded that of the S&P 500 and the Software industry. The net income increased by 101.1% when compared to the same quarter one year prior, rising from -$273.00 million to $3.00 million. Net operating cash flow has significantly increased by 3150.00% to $183.00 million when compared to the same quarter last year. In addition, ELECTRONIC ARTS INC has also vastly surpassed the industry average cash flow growth rate of 11.90%. You can view the full analysis from the report here: EA Ratings Report STOCKS TO BUY: TheStreet Quant Ratings has identified a handful of stocks that can potentially TRIPLE in the next 12 months. Learn more.
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