Electronic Arts (NASDAQ:EA) Issues Q3 Earnings Guidance

Electronic Arts (NASDAQ:EA) issued an update on its third quarter earnings guidance on Tuesday morning. The company provided EPS guidance of $0.85-1.02 for the period, compared to the consensus EPS estimate of $1.35. The company issued revenue guidance of $2.4-2.55 billion, compared to the consensus revenue estimate of $2.53 billion. Electronic Arts also updated its FY 2025 guidance to 7.040-7.650 EPS.

Wall Street Analysts Forecast Growth

EA has been the subject of a number of research reports. Raymond James raised their price objective on Electronic Arts from $155.00 to $170.00 and gave the stock an “outperform” rating in a research report on Wednesday, July 31st. The Goldman Sachs Group raised their price target on shares of Electronic Arts from $139.00 to $150.00 and gave the stock a “neutral” rating in a report on Wednesday, July 31st. Wedbush reiterated an “outperform” rating and issued a $170.00 price objective on shares of Electronic Arts in a research note on Friday, October 25th. Morgan Stanley reissued an “equal weight” rating and set a $150.00 target price on shares of Electronic Arts in a research note on Wednesday, September 18th. Finally, BNP Paribas upgraded shares of Electronic Arts to a “strong-buy” rating in a report on Wednesday, October 9th. Eight research analysts have rated the stock with a hold rating, eleven have given a buy rating and one has issued a strong buy rating to the stock. According to data from MarketBeat.com, the stock currently has a consensus rating of “Moderate Buy” and a consensus price target of $163.65.

Electronic Arts Stock Performance

Shares of NASDAQ EA traded up $3.52 during trading hours on Wednesday, hitting $149.14. 3,600,369 shares of the stock were exchanged, compared to its average volume of 2,057,129. Electronic Arts has a one year low of $121.63 and a one year high of $153.51. The company’s 50 day moving average is $144.83 and its 200 day moving average is $139.88. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.45 and a quick ratio of 1.45. The firm has a market capitalization of $39.63 billion, a P/E ratio of 31.85, a P/E/G ratio of 1.97 and a beta of 0.79.

Electronic Arts (NASDAQ:EA) last released its quarterly earnings results on Tuesday, July 30th. The game software company reported $0.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.03 by $0.06. The company had revenue of $1.26 billion during the quarter, compared to analysts’ expectations of $1.21 billion. Electronic Arts had a net margin of 15.77% and a return on equity of 16.34%. On average, research analysts expect that Electronic Arts will post 5.93 EPS for the current year.

Insider Activity at Electronic Arts

In other news, Director Luis A. Ubinas sold 2,126 shares of the stock in a transaction that occurred on Friday, August 2nd. The stock was sold at an average price of $146.77, for a total value of $312,033.02. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through this link. In other news, CEO Andrew Wilson sold 2,500 shares of the stock in a transaction that occurred on Monday, August 26th. The stock was sold at an average price of $148.88, for a total value of $372,200.00. Following the completion of the sale, the chief executive officer now directly owns 56,747 shares of the company’s stock, valued at approximately $8,448,493.36. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this hyperlink. Also, Director Luis A. Ubinas sold 2,126 shares of the stock in a transaction that occurred on Friday, August 2nd. The shares were sold at an average price of $146.77, for a total value of $312,033.02. The disclosure for this sale can be found here. Insiders sold a total of 24,770 shares of company stock worth $3,652,410 in the last 90 days. 0.22% of the stock is owned by company insiders.

About Electronic Arts

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands.