Subject: Earnings...
Summary

* Revenue : $22.08B - up from $21.82B in the same quarter last year

* EPS: $1.21 / share - a big improvement over last year as the losses in streaming have been cut (its now a break even business)


General Thoughts
* In 2019 (pre-streaming) they earned $5.77 / share on $69B in revenue. Are they able to transform their business such that they could get the same level of profitability on the larger revenue base ($80B+)? I think they can, and hence I am bullish on the future prospects - but its certainly not a guarantee.

* If they can get $6.00 in EPS with a 20x multiple you get $120 / share
* If they can get $7.00 in EPS with a 25x multiple you get $174 / share

I view this as the range of mostly positive/likely outcomes. Stock is trading down about 10% which shows the skepticism in their ability to execute.

tecmo
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