Analysts Forecasting Profitability Indicators: Electronic Arts Inc. (NASDAQ:EA), Telefonica, S.A. (NYSE:TEF)

By tracking previous views Electronic Arts Inc. (NASDAQ:EA) also in plain sight to attract passive investors, shares in most recent trading session surged 0.30% after traded at $79.75. Ticker has price to earnings growth of 1.23, which is a valuation metric for determining relative trade-off among price of a stock.

Electronic Arts Inc. (EA) revealed that a new partnership between Real Racing 3, an award-winning* mobile racing franchise, and the FIA Formula E Championship, the world’s first fully-electric single-seater series, to bring the season-opening Hong Kong ePrix to life in the game.

“Real Racing 3 is committed to being the one-stop shop for all things motorsports on mobile,” said Luis Gigliotti, Executive Producer on Real Racing 3. “And with that commitment to bringing players the highest-end content, we have partnered with the newest, fastest growing motorsport in the world: the exciting, forward-looking motorsport of Formula E racing.”

For trailing twelve months, EA attains gross profit margin of 70.30% and operating margin stands at 22.30%, that are showing consistency of trends in firm’s earnings. While to figure out more clear vision, firm’s returns on investment calculated as 25.90%; it gives answer about efficiency of different investments in different securities. The returns on assets of firm also presenting perceptible condition of profitability, it has ROA of 18.60%, the very positive ratio starts from >+15% and very negative hits to <-15%.

The firm has noticeable volatility credentials, price volatility of stock was 2.55% for a week and 2.52% for a month. The performance of firm for the quarter recorded as -3.94% and for year stands at 11.80%, while the YTD performance was 15.70%. The co attains 2.05 for Average True Range for 14 days. The stock price of EA is moving up from its 20 days moving average with 1.14% and isolated negatively from 50 days moving average with -0.52%.

Telefonica, S.A. (NYSE:TEF) persists its position slightly strong in context of buying side, while shares price surged remains unchanged during latest trading session.

Profitability Ratio Analysis; to measure firm’s performance and profitability, we focus on ordinary profitability ratio, TEF has gross profit margin of 74.60% for trailing twelve months and operating margin is calculated as 6.10%, these are a better detectors to find consistency or positive/negative trends in a firm’s earnings. Following in trace line, returns on investment amplify the findings, the firm’s ROI concludes as 3.20%; it gives idea for personal financial decisions, to compare a firm’s profitability or to compare the efficiency of different investments. The returns on assets of firm also on noticeable level, it has ROA of 0.30%, which signifies how profitable a firm is relative to its total assets.

To make strengthen these views, the active industry firm has Quick Ratio of 0.50, which indicates firm has sufficient short-term assets to cover its immediate liabilities. In addition, the firm has debt to equity ratio of 3.56, sometimes its remain same with long term debt to equity ratio. Taking notice on volatility measures, price volatility of stock was 1.44% for a week and 1.15% for a month.

 

About Richard Avery

He is a capital projects manager and process design engineer at a large-cap company. He has renowned MBA degree. Before joining SWR, he was a freelance writer for renounce tech websites. He is currently studying for CFP exam. Interests: Tech stocks, Economic Markets, Blue-chips.

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