Electronic Arts (NASDAQ:EA) Updates Q3 Earnings Guidance

Electronic Arts (NASDAQ:EA) issued an update on its third quarter earnings guidance on Tuesday morning. The company provided earnings per share guidance of $0.85-1.02 for the period, compared to the consensus earnings per share 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.

Electronic Arts Stock Performance

EA stock traded up $3.52 during midday trading on Wednesday, hitting $149.14. The stock had a trading volume of 3,600,369 shares, compared to its average volume of 2,057,129. The firm has a market capitalization of $39.63 billion, a price-to-earnings ratio of 31.85, a P/E/G ratio of 1.97 and a beta of 0.79. Electronic Arts has a 52 week low of $121.63 and a 52 week high of $153.51. The stock has a 50-day simple moving average of $144.83 and a 200 day simple moving average of $139.88. The company has a current ratio of 1.45, a quick ratio of 1.45 and a debt-to-equity ratio of 0.25.

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

Analyst Ratings Changes

A number of research analysts have issued reports on EA shares. BNP Paribas raised Electronic Arts to a “strong-buy” rating in a report on Wednesday, October 9th. JPMorgan Chase & Co. cut their price objective on Electronic Arts from $155.00 to $150.00 and set a “neutral” rating for the company in a report on Wednesday. The Goldman Sachs Group lifted their price objective on Electronic Arts from $139.00 to $150.00 and gave the company a “neutral” rating in a report on Wednesday, July 31st. Morgan Stanley reissued an “equal weight” rating and set a $150.00 price objective on shares of Electronic Arts in a report on Wednesday, September 18th. Finally, Benchmark reissued a “buy” rating and set a $163.00 price objective on shares of Electronic Arts in a report on Wednesday. Eight analysts have rated the stock with a hold rating, eleven have issued a buy rating and one has assigned a strong buy rating to the company. According to MarketBeat, the stock has an average rating of “Moderate Buy” and a consensus price target of $163.65.

Insider Buying and Selling

In related news, insider Vijayanthimala Singh sold 1,000 shares of Electronic Arts stock in a transaction dated Tuesday, September 3rd. The stock was sold at an average price of $151.70, for a total value of $151,700.00. Following the completion of the sale, the insider now directly 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 sale was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In other news, insider Vijayanthimala Singh sold 1,000 shares of the business’s stock in a transaction dated Tuesday, September 3rd. The stock was sold at an average price of $151.70, for a total transaction of $151,700.00. Following the completion of the transaction, the insider now directly owns 30,190 shares in the company, valued at approximately $4,579,823. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. Also, EVP Jacob J. Schatz sold 1,500 shares of the business’s stock in a transaction dated Wednesday, August 28th. The stock was sold at an average price of $149.32, for a total value of $223,980.00. Following the transaction, the executive vice president now owns 27,860 shares of the company’s stock, valued at $4,160,055.20. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders sold a total of 24,770 shares of company stock worth $3,652,410 over the last three months. 0.22% of the stock is currently owned by company 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.