Compared to Estimates, Electronic Arts (EA) Q3 Earnings: A Look at Key Metrics

Zacks
05 Feb

Electronic Arts (EA) reported $2.22 billion in revenue for the quarter ended December 2024, representing a year-over-year decline of 6.4%. EPS of $2.83 for the same period compares to $2.96 a year ago.

The reported revenue represents a surprise of -1.68% over the Zacks Consensus Estimate of $2.25 billion. With the consensus EPS estimate being $2.99, the EPS surprise was -5.35%.

While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.

Since these metrics play a crucial role in driving the top- and bottom-line numbers, comparing them with the year-ago numbers and what analysts estimated about them helps investors better project a stock's price performance.

Here is how Electronic Arts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:

  • Net Bookings: $2.22 billion versus the eight-analyst average estimate of $2.25 billion.
  • Net revenue by composition- Live services and other- Non-GAAP (Net Bookings): $1.58 billion compared to the $1.54 billion average estimate based on four analysts. The reported number represents a change of -7.6% year over year.
  • Net revenue by composition- Full game- Full game downloads- Non-GAAP (Net Bookings): $471 million compared to the $487.20 million average estimate based on four analysts. The reported number represents a change of +1.7% year over year.
  • Net revenue by composition- Full game- Packaged goods- Non-GAAP (Net Bookings): $162 million compared to the $189.88 million average estimate based on four analysts. The reported number represents a change of -15.2% year over year.
View all Key Company Metrics for Electronic Arts here>>>

Shares of Electronic Arts have returned -15.4% over the past month versus the Zacks S&P 500 composite's +1% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.

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