Electronic Arts (NASDAQ:EA) Issues FY 2025 Earnings Guidance

Electronic Arts (NASDAQ:EA) updated its FY 2025 earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of 7.040-7.650 for the period, compared to the consensus estimate of 7.580. The company issued revenue guidance of $7.4 billion-$7.7 billion. Electronic Arts also updated its FY25 guidance to $3.83-4.33 EPS.

Wall Street Analysts Forecast Growth

A number of research analysts have commented on the company. BNP Paribas upgraded Electronic Arts to a “strong-buy” rating in a research note on Wednesday, October 9th. Oppenheimer raised their target price on Electronic Arts from $150.00 to $170.00 and gave the company an “outperform” rating in a report on Tuesday, July 16th. DZ Bank upgraded shares of Electronic Arts from a “hold” rating to a “buy” rating and boosted their price target for the stock from $135.00 to $177.00 in a research note on Thursday. Citigroup lowered shares of Electronic Arts from a “buy” rating to a “neutral” rating and raised their price objective for the company from $148.00 to $161.00 in a research note on Monday, July 15th. Finally, JPMorgan Chase & Co. cut their target price on shares of Electronic Arts from $155.00 to $150.00 and set a “neutral” rating on the stock in a research note on Wednesday. Eight equities research analysts have rated the stock with a hold rating, eleven have assigned a buy rating and two have given a strong buy rating to the stock. Based on data from MarketBeat, the stock currently has an average rating of “Moderate Buy” and an average price target of $164.39.

Electronic Arts Price Performance

Shares of EA traded up $0.67 during mid-day trading on Friday, hitting $151.52. The company’s stock had a trading volume of 853,672 shares, compared to its average volume of 2,054,230. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.43 and a quick ratio of 1.45. The firm has a 50-day moving average price of $144.89 and a 200 day moving average price of $140.02. Electronic Arts has a fifty-two week low of $124.92 and a fifty-two week high of $153.51. The stock has a market capitalization of $40.03 billion, a price-to-earnings ratio of 38.78, a PEG ratio of 2.04 and a beta of 0.79.

Electronic Arts (NASDAQ:EA) last announced its earnings results on Tuesday, July 30th. The game software company reported $0.09 earnings per share (EPS) for the quarter, topping analysts’ consensus estimates of $0.03 by $0.06. Electronic Arts had a return on equity of 18.56% and a net margin of 14.12%. The company had revenue of $1.26 billion for the quarter, compared to analyst estimates of $1.21 billion. On average, research analysts predict that Electronic Arts will post 5.93 EPS for the current fiscal year.

Electronic Arts Announces Dividend

The firm also recently announced a quarterly dividend, which will be paid on Wednesday, December 18th. Stockholders of record on Wednesday, November 27th will be issued a $0.19 dividend. The ex-dividend date of this dividend is Wednesday, November 27th. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.50%. Electronic Arts’s payout ratio is currently 19.54%.

Insider Activity

In other news, CFO Stuart Canfield sold 1,260 shares of the stock in a transaction that occurred on Monday, August 19th. The shares were sold at an average price of $148.37, for a total value of $186,946.20. Following the completion of the sale, the chief financial officer now directly owns 7,553 shares of the company’s stock, valued at $1,120,638.61. This represents a 0.00 % decrease in their ownership of the stock. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. In other news, insider Vijayanthimala Singh sold 7,384 shares of Electronic Arts stock in a transaction dated Wednesday, August 28th. The stock was sold at an average price of $149.91, for a total transaction of $1,106,935.44. Following the completion of the sale, the insider now directly owns 31,190 shares in the company, valued at $4,675,692.90. The trade was a 0.00 % decrease in their position. The sale was disclosed in a filing with the Securities & Exchange Commission, which can be accessed through this link. Also, CFO Stuart Canfield sold 1,260 shares of the stock in a transaction that occurred on Monday, August 19th. The stock was sold at an average price of $148.37, for a total value of $186,946.20. Following the completion of the transaction, the chief financial officer now owns 7,553 shares in the company, valued at $1,120,638.61. This represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last quarter, insiders have sold 22,644 shares of company stock worth $3,340,377. 0.22% of the stock is owned by corporate 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.