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The Motley Fool fool.com 31 Jul, 2022 14:30 am

Will Electronic Arts Disappoint Investors on Tuesday?

Will Electronic Arts Disappoint Investors on Tuesday?
The video game industry is slowing after a huge 2021.

The video game developer is set to announce its fiscal 2023 first-quarter results (for the quarter ended June 30) in just a few days.Wall Street is bracing for weaker results ahead, with Q1 sales projected to decline by about 1% and with fiscal 2023 projected to see just a 7% revenue increase.But EA's launch calendar is heavily tilted toward the second half of fiscal 2023, meaning investors will have to wait for more clarity.These wins also support the company's gushing cash flow, which is climbing back toward a record high of over $2 billion.

Assuming EA doesn't have to postpone any big releases, as Activision Blizzard did, the company will likely post another year of quickly expanding sales, rising cash flow, and improving margins.Back in May, the company revealed that sales rose 18% for the fiscal fourth quarter (ended March 31), marking just a modest deceleration from previous quarters.

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