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

Electronic Arts (NASDAQ:EA) issued an update on its FY 2025 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of 6.890-7.700 for the period, compared to the consensus estimate of 7.440. The company issued revenue guidance of $7.3 billion-$7.7 billion, compared to the consensus revenue estimate of $7.5 billion. Electronic Arts also updated its FY25 guidance to $3.34-4.00 EPS.

Electronic Arts Price Performance

Electronic Arts stock traded up $1.27 during mid-day trading on Tuesday, reaching $149.12. 4,086,851 shares of the company’s stock traded hands, compared to its average volume of 2,162,698. The company has a market cap of $39.63 billion, a price-to-earnings ratio of 31.80, a PEG ratio of 2.28 and a beta of 0.79. The stock has a 50 day moving average of $138.89 and a two-hundred day moving average of $135.63. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 0.25. Electronic Arts has a 12-month low of $117.47 and a 12-month high of $150.90.

Electronic Arts (NASDAQ:EA) last released its quarterly earnings results on Tuesday, May 7th. The game software company reported $0.92 earnings per share (EPS) for the quarter, missing analysts’ consensus estimates of $1.09 by ($0.17). Electronic Arts had a net margin of 16.83% and a return on equity of 18.81%. The business had revenue of $1.67 billion for the quarter, compared to analysts’ expectations of $1.78 billion. Equities analysts forecast that Electronic Arts will post 5.75 earnings per share for the current year.

Electronic Arts Announces Dividend

The company also recently announced a quarterly dividend, which will be paid on Wednesday, September 18th. Stockholders of record on Wednesday, August 28th will be paid a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 0.51%. Electronic Arts’s dividend payout ratio is currently 16.24%.

Analyst Upgrades and Downgrades

Several equities research analysts have recently weighed in on the stock. Stifel Nicolaus increased their target price on shares of Electronic Arts from $163.00 to $165.00 and gave the company a buy rating in a research note on Wednesday, July 17th. Deutsche Bank Aktiengesellschaft reduced their target price on shares of Electronic Arts from $153.00 to $150.00 and set a hold rating on the stock in a research note on Thursday, May 9th. Wedbush reissued an outperform rating and issued a $162.00 target price on shares of Electronic Arts in a research note on Wednesday, May 8th. Morgan Stanley upped their price target on shares of Electronic Arts from $140.00 to $150.00 and gave the stock an equal weight rating in a report on Tuesday, July 23rd. Finally, Oppenheimer upped their price target on shares of Electronic Arts from $150.00 to $170.00 and gave the stock an outperform rating in a report on Tuesday, July 16th. Nine analysts have rated the stock with a hold rating and eleven have assigned a buy rating to the company’s stock. According to MarketBeat.com, the stock presently has a consensus rating of Moderate Buy and a consensus target price of $153.50.

Insiders Place Their Bets

In other Electronic Arts news, insider Vijayanthimala Singh sold 800 shares of the stock in a transaction dated Wednesday, May 1st. The shares were sold at an average price of $126.64, for a total transaction of $101,312.00. Following the transaction, the insider now directly owns 26,283 shares in the company, valued at approximately $3,328,479.12. The sale was disclosed in a document filed with the SEC, which can be accessed through this hyperlink. In other news, COO Laura Miele sold 2,000 shares of the firm’s stock in a transaction dated Wednesday, May 1st. The shares were sold at an average price of $128.15, for a total value of $256,300.00. Following the sale, the chief operating officer now directly owns 32,772 shares in the company, valued at approximately $4,199,731.80. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Vijayanthimala Singh sold 800 shares of the firm’s stock in a transaction dated Wednesday, May 1st. The shares were sold at an average price of $126.64, for a total transaction of $101,312.00. Following the completion of the sale, the insider now owns 26,283 shares in the company, valued at $3,328,479.12. The disclosure for this sale can be found here. Insiders have sold a total of 26,039 shares of company stock worth $3,555,081 in the last three months. Corporate insiders own 0.22% of the company’s stock.

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.