Electronic Arts Results Help Tech ETFs
May 5th 2011 at 6:59am by John Spence
Tech exchange traded funds (ETFs) could catch a tailwind Thursday on more earnings reports from the sector, including Electronic Arts (NasdaqGS: ERTS).
EA shares rose in after-hours trade Wednesday after the company posted higher fiscal fourth-quarter profit and revenue.
“We’re happy to report another strong quarter, top and bottom line. We’re particularly proud of the scale and growth rate of our digital business,” said Chief Executive John Riccitiello in the earnings release.
“EA’s digital business continued to grow rapidly, having grown 46% in fiscal 2011,” said BMO Capital Markets analysts in a note. They have an outperform rating on the stock.
“We believe the company’s significant investments in digital revenues will continue to pay dividends through margin expansion and revenue growth,” they added.
ETFs that hold the video-game maker include iShares S&P North American Technology-Software Index Fund (NYSEArca: IGV) and Rydex S&P Equal Weight Technology (NYSEArca: RYT).
iShares S&P North American Technology-Software
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