NEW YORK (TheStreet) -- Investors shouldn't be concerned about the weaker-than-expected fiscal fourth-quarter forecast that Electronic Arts provided late Tuesday when it reported fiscal third-quarter results, analysts say. The game publisher's fiscal fourth-quarter results will take a hit from the postponement of two releases until the next fiscal year and from uncertainty about future currency movements, analysts said Wednesday. (EA's fiscal third quarter finished at the end of 2014.) Must Read: 10 Stocks Carl Icahn Loves for 2015: Apple, eBay, Hertz and More But the delays aren't long ones, and Electronic Arts reported stronger-than-expected fiscal third-quarter results, while boosting its profit and revenue estimate for the current fiscal year. EA is in good position for growth in its next fiscal year thanks in large part to its strong PS4 and Xbox One offerings and continued strong industry digital trends, analysts said. "Nobody should care about the quarter," Wedbush Securities analyst Michael Pachter said, referring to EA's forecast about its fiscal fourth quarter. "They killed it for Q3 and the delays are literally a month," he said, referring to the postponement of the releases of the next entry in its golf game series PGA Tour and the first Sims 4 expansion pack. Also important is that EA's sports business is doing exceptionally well, especially FIFA 15 Ultimate Team add-on content, said Pachter. Other key game releases for next fiscal year that investors should be upbeat about include the next entry in EA's popular Need for Speed series and Battlefield Hardline, he said. The latter is EA's next major game release and it's not shipping until the third week of March, meaning the full impact won't be felt until next fiscal year. The addition of Star Wars: Battlefront, shipping in the 2015 holiday season, is also reason for optimism, as are the successes of Mass Effect and Dragon Age, said Pachter. Mass Effect 4 is expected to be released at some point in EA's next fiscal year. Dragon Age: Inquisition was one of EA's best-selling games in the third quarter. "The big plus, though, is the platform for digital and the growth" of EA's live services business, said Needham & Company analyst Sean McGowan. "Consumers are more engaged than ever, and that equals more spending at very high margins," he said. Electronic Arts' fiscal third-quarter revenue grew to $1.1 billion from $808 million a year earlier, while it swung to a $142 million profit (44 cents a share) from a $308 million ($1 a share) loss. Must Read: Warren Buffett's Top 10 Dividend-Paying Stocks for 2015 The company had projected revenue of $1.1 billion and EPS of about 41 cents. EA expects to report revenue of about $1.2 billion and EPS of about $1.07 for Q4, and non-GAAP revenue of about $830 million and non-GAAP EPS of about 22 cents. The non-GAAP fiscal fourth quarter forecast was weaker than the previous implied estimate of $905 million in revenue and 23 cents a share in profit, said Pachter. But EA boosted its forecast for this fiscal year from revenue of $4.18 billion to $4.25 billion and EPS guidance from $2.05 to $2.35 a share. Investors should keep in mind that EA is likely just being conservative with its fiscal fourth-quarter forecast due to factors including the game delays, said McGowan. "For the past several quarters they have blown away their own guidance, and with the upside coming mostly from digital content, that's really hard to see until after they report it," McGowan said. "They are right to be conservative, but investors should not assume their forecast is a 'best case.'" he said. EA is also unsure when it will start to recognize revenue from FIFA Online 3 in China because that soccer title is being handled by Chinese partner TenCent , McGowan also said. Electronic Arts continues to see rapid growth from digital sources, including downloadable content and mobile gaming, BMO Capital Markets analyst Edward Williams said in a research note. "The company's console digital offerings can be complementary and expand key franchises," he wrote. On a trailing 12-month basis, digital sales now make up more than 50% of EA's revenue, reflecting the impact of the publisher further transitioning to live gaming services, he also wrote. Electronic Art's operating margins, which have already grown from 10% to 24% in the past two years, still have room for expansion, Sterne Agee analyst Arvind Bhatia said in a research note. Thirty percent is achievable over the next three years, he wrote. That should happen as the business continues to shift to digital, R&D costs remain about flat and EA realizes even larger marketing efficiencies as more games become live services, he also wrote. But Wedbush's Pachter warned: "It is going to be hard for [EA's] stock to go up much more until investors see that the industry is healthy later this year." EA shares were up $5.34, or 11%, at $53.75 at around 11:30 a.m. EST Wednesday. Must Read: 16 Rock-Solid Dividend Stocks With 50 Years of Increasing Dividends and Market-Beating Performance 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." You can view the full analysis from the report here: EA Ratings Report
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