Yahoo Finance Electronic Arts (EA) to Report Q1 Earnings: What's in Store?
Electronic Arts EA is set to report first-quarter fiscal 2025 results on Jul 30.
For first-quarter fiscal 2025, EA expects GAAP revenues between $1.575 billion and $1.675 billion and earnings per share in the range of 73-90 cents.
The Zacks Consensus Estimate for earnings has remained steady at 42 cents per share in the past 30 days. The figure indicates a 63.16% decline from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $1.21 billion, suggesting a 23.01% decrease from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters while missing once, the average surprise being 4.54%.
Let’s see how things have shaped up for this announcement.
Electronic Arts Inc. Price and EPS Surprise
Electronic Arts Inc. price-eps-surprise | Electronic Arts Inc. Quote
Factors to Consider
Electronic Arts is expected to report subdued results in the first quarter of fiscal 2025. The company faces headwinds due to slow demand for its digital and live services across its portfolio, which is likely to have reflected sluggish active user growth in the to-be-reported quarter. This slowdown, coupled with a lack of new game releases, is anticipated to have negatively impacted the company's overall performance.
Electronic Arts' financial outlook appears challenging, with net bookings for the fiscal fourth quarter reaching $1.67 billion, marking a 14% year-over-year decline in both actual and constant currency terms. For the first quarter of fiscal 2025, EA projects net bookings between $1.15 billion and $1.25 billion. However, the Zacks Consensus Estimate for bookings stands at $1.215 billion, indicating a 23% year-over-year decline.
Despite these challenges, EA's popular sports titles are expected to contribute positively to the company's performance. The rising popularity of games, such as EA SPORTS UFC 5, EA SPORTS NHL 24 and EA SPORTS WRC (the official game of the FIA World Rally Championship), is likely to have bolstered total bookings. Additionally, blockbuster franchises like EA SPORTS FIFA and EA SPORTS Madden NFL are expected to have remained significant contributors to net bookings.
However, EA faces pressure on its profit margins due to increased operating expenses related to game development and marketing. These rising costs are expected to have kept margins under pressure in the quarter to be reported, potentially offsetting some of the positive impacts from popular game titles.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat.
EA currently has an Earnings ESP of +1.90% and carries a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some other stocks worth considering, as our model shows that these also have the right combination of elements to beat on earnings this season.
Aspen Aerogels ASPN has an Earnings ESP of +23.53% and sports a Zacks Rank #1 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Aspen Aerogels is set to report its second-quarter 2024 results on Aug 7. The Zacks Consensus Estimate for ASPN’s earnings is pegged at 5 cents per share, indicating a significant jump from the prior-year quarter’s loss of 22 cents per share.
Apple AAPL has an Earnings ESP of +3.23% and a Zacks Rank #2 at present.
Apple is scheduled to release third-quarter fiscal 2024 results on Aug 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $1.33 per share, suggesting a jump of 5.6% from the prior-year quarter.
GoDaddy GDDY has an Earnings ESP of +13.08% and a Zacks Rank #3 at present.
GoDaddy is set to report second-quarter 2024 results on Aug 1. The Zacks Consensus Estimate for GDDY’s earnings is pegged at $1.07 per share, indicating growth of 69.8% from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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