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 FY25 guidance to $3.83-4.33 EPS.

Electronic Arts Price Performance

Shares of EA stock traded up $1.44 on Tuesday, hitting $145.62. 2,699,417 shares of the company’s stock were exchanged, compared to its average volume of 2,049,727. 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 stock has a market cap of $38.70 billion, a P/E ratio of 30.81, a price-to-earnings-growth ratio of 1.97 and a beta of 0.79. Electronic Arts has a 12 month low of $119.92 and a 12 month high of $153.51. The company has a 50 day moving average of $144.90 and a 200 day moving average of $139.76.

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

Analyst Upgrades and Downgrades

Several equities analysts have commented on the company. Benchmark reiterated a “buy” rating and issued a $163.00 target price on shares of Electronic Arts in a research report on Wednesday, September 18th. Jefferies Financial Group assumed coverage on Electronic Arts in a research note on Thursday, July 11th. They issued a “buy” rating and a $165.00 price target for the company. JPMorgan Chase & Co. increased their price target on Electronic Arts from $148.00 to $155.00 and gave the company a “neutral” rating in a research note on Monday, July 15th. Stifel Nicolaus increased their price target on Electronic Arts from $165.00 to $167.00 and gave the company a “buy” rating in a research note on Wednesday, July 31st. Finally, The Goldman Sachs Group increased their price target on Electronic Arts from $139.00 to $150.00 and gave the company a “neutral” rating in a research note on Wednesday, July 31st. Eight analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has issued a strong buy rating to the company’s stock. According to data from MarketBeat, the company has a consensus rating of “Moderate Buy” and an average price target of $162.76.

Insider Activity

In other news, insider Vijayanthimala Singh sold 1,000 shares of the firm’s stock in a transaction that occurred on Tuesday, September 3rd. The stock was sold at an average price of $151.70, for a total value of $151,700.00. Following the transaction, the insider now owns 30,190 shares in the company, valued at $4,579,823. This trade 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 is available through this hyperlink. In related news, CEO Andrew Wilson sold 2,500 shares of Electronic Arts stock in a transaction on Monday, August 26th. The stock was sold at an average price of $148.88, for a total transaction of $372,200.00. Following the sale, the chief executive officer now directly owns 56,747 shares in the company, valued at approximately $8,448,493.36. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, insider Vijayanthimala Singh sold 1,000 shares of Electronic Arts stock in a transaction on Tuesday, September 3rd. The stock was sold at an average price of $151.70, for a total value of $151,700.00. Following the sale, the insider now owns 30,190 shares in the company, valued at $4,579,823. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold 24,770 shares of company stock worth $3,652,410 over the last 90 days. 0.22% of the stock is currently owned by corporate insiders.

Electronic Arts Company Profile

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.