Electronic Arts Inc. (EA), headquartered in Redwood City, California, develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, mobile phones, and tablets. Valued at $37.26 billion by market cap, the company also provides advertising services and licenses its games to third parties to distribute and host games. The video game maker is expected to announce its fiscal first-quarter earnings for 2025 after the market closes on Tuesday, Jul. 30.
Ahead of the event, analysts expect EA to report a profit of $0.02 per share on a diluted basis, down 97.3% from $0.75 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing on another occasion. During the previous quarter, EA authorized a new three-year stock buyback plan totaling $5 billion.
For the full year, analysts expect EA to report EPS of $5.72, up 10% from $5.20 in fiscal 2024.
EA stock has underperformed the S&P 500’s ($SPX) 22.6% gains over the past 52 weeks, with shares up 4.7% during this period. Similarly, it underperformed the S&P 500 Communication Sector SPDR’s (XLC) 30.2% gains over the same time frame.
On May 22, EA shares closed up more than 4% after Bloomberg Intelligence said the company’s 2025 bookings could top consensus expectations on robust game EA Sports FC 2024 sales and live-services spending.
On May 7, EA reported its Q4 results. Its adjusted EPS of $1.37 fell short of Wall Street expectations of $1.54. The company’s adjusted revenue was $1.67 billion, falling short of Wall Street forecasts of $1.78 billion. For fiscal 2024, the company reported adjusted revenue and EPS of $7.43 billion and $4.70, respectively. Its net bookings for fiscal 2024 rose 1% year-over-year to $7.43 billion.
EA expects its fiscal 2025 adjusted revenue to be between $7.10 billion and $7.50 billion and EPS to be between $3.34 and $4. It expects net bookings to be between $7.30 billion to $7.70 billion and operating cash flow between $2.05 billion and $2.25 billion. EA shares closed down marginally on the day the results were released but have been on an uptrend since then.
Analysts’ consensus opinion on EA stock is bullish, with a “Moderate Buy” rating overall. Out of 23 analysts covering the stock, 10 advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, and 11 give a “Hold.” The average analyst price target for EA is $152.48, indicating a potential upside of 8.8% from the current levels.
On the date of publication, Dipanjan Banchur did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
