Electronic Arts Earnings: What To Look For From EA

StockStory
03 Feb
Electronic Arts Earnings: What To Look For From EA

Video game publisher Electronic Arts (NASDAQ:EA) will be announcing earnings results tomorrow after market hours. Here’s what investors should know.

Electronic Arts beat analysts’ revenue expectations by 5% last quarter, reporting revenues of $2.08 billion, up 14.2% year on year. It was a slower quarter for the company, with EPS guidance for next quarter missing analysts’ expectations.

Is Electronic Arts a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Electronic Arts’s revenue to decline 2.8% year on year to $2.30 billion, a reversal from the 1% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $3.08 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Electronic Arts has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Electronic Arts’s peers in the consumer internet segment, some have already reported their Q4 results, giving us a hint as to what we can expect. Coursera delivered year-on-year revenue growth of 6.1%, beating analysts’ expectations by 1.6%, and Meta reported revenues up 20.6%, topping estimates by 2.9%. Coursera traded down 19.5% following the results while Meta was up 1.5%.

Read our full analysis of Coursera’s results here and Meta’s results here.

Investors in the consumer internet segment have had steady hands going into earnings, with share prices flat over the last month. Electronic Arts is down 15.4% during the same time and is heading into earnings with an average analyst price target of $148.46 (compared to the current share price of $121.95).

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Disclaimer: Investing carries risk. This is not financial advice. The above content should not be regarded as an offer, recommendation, or solicitation on acquiring or disposing of any financial products, any associated discussions, comments, or posts by author or other users should not be considered as such either. It is solely for general information purpose only, which does not consider your own investment objectives, financial situations or needs. TTM assumes no responsibility or warranty for the accuracy and completeness of the information, investors should do their own research and may seek professional advice before investing.

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