EA shares inch lower ahead of 4Q earnings report

It's unlikely that EA will offer any updates on its proposed $2 billion acquisition of "Grand Theft Auto" publisher Take-Two Interactive Software Inc., said Wedbush Morgan analyst Michael Pachter, who rates EA "Strong Buy."

"However, we note that EA's offer expires on May 16, so we expect a resolution one way or another by the end of the week," he wrote in a note to investors. "We do not expect a competing offer from other parties, and think EA is serious about its intention to withdraw this offer if the parties remain too far apart."

The analyst expects EA's results to hit the high end of its adjusted guidance for both sales and earnings per share. The company's U.S. sales, he said, look to be ahead of its guidance based on data from the NPD Group.

Excluding acquisition charges, the effect of the deferred revenue and other items, EA expects fourth-quarter results between a loss of 3 cents and a profit of 2 cents per share, on sales of $775 million and $850 million.

Analysts polled by Thomson Financial expect break-even per-share results on sales of $834.8 million, on average.

Shares of Redwood City, Calif.-based Electronic Arts fell $1.15, or 2.1 percent, to $53.12 in midday trading. The stock has traded in a 52-week range of $43.62 and $61.62.

New York-based Take-Two's shares slid 15 cents to $26.74.