Looks like someone has an all-natural surge of confidence. Despite the potential of being knocked back to No. 2 status in the game publisher arena, EA is still predicting a robust $6 billion in revenue for fiscal 2011. To put that in context, that would be 15 percent of the $40 billion in revenue for the entire game industry in 2007.
EA's fiscal 2011 estimate is 53 percent higher than the estimated $3.9 billion the company will make in fiscal 2008 (which ends March 31) and 19 percent higher than the $4.9 billion stock analysts estimate they will make in fiscal 2011. The estimate includes $1.7 billion from EA Sports, $1 billion from online casual and mobile games, and
$0.9 billion from "digital revenue," (i.e. downloadable games and content).
EA shares were up 5.5 percent on the news, which we guess means that investors are confident in EA's rather bullish projections. Either that or they just don't know when they're being fed a lot of hot air. Take your pick.