Yahoo Finance Electronic Arts (EA) to Report Q4 Earnings: What's in Store?
Electronic Arts EA is set to report fourth-quarter fiscal 2024 results on May 7.
For fourth-quarter fiscal 2024, EA expects GAAP revenues between $1.625 billion and $1.925 billion and earnings in the range of 20-68 cents per share.
The Zacks Consensus Estimate for earnings has moved south by a penny to $1.55 per share in the past 30 days. The figure indicates a 12.43% decline from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $1.78 billion, suggesting an 8.52% decrease from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 16.08%.
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
Slow demand for EA’s digital and live services across its portfolio is expected to have reflected in active user growth in the fiscal fourth quarter.
A lack of new game releases and a seasonally slow quarter are likely to have mulled upon the company’s performance.
Net bookings for the fiscal third quarter were $2.36 billion, up 1% year over year or 2% in constant currency. The company expects net bookings between $1.625 billion and $1.925 billion in the fiscal fourth quarter. The Zacks Consensus Estimate for bookings is currently pegged at $1.775 billion, indicating a decline of 8.8% year over year.
The launch of EA SPORTS NHL 24, the latest installment of the hockey game and EA SPORTS WRC, the official game of the FIA World Rally Championship in the last quarter, is likely to have aided total bookings in the to-be-reported quarter. EA SPORTS UFC 5, the latest game of the martial arts franchise, was also released in the last quarter.
Blockbuster games like EA SPORTS FIFA and EA SPORTS Madden NFL are expected to have contributed to total net bookings.
However, the company has been witnessing increased operating expenses for game development and marketing. The rising expenses are expected to have kept margins under pressure in the quarter to be reported.
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. But that’s not the case here.
EA currently has an Earnings ESP of -7.79% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
NVIDIA NVDA has an Earnings ESP of +2.50% and carries a Zacks Rank #2 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
NVIDIA is scheduled to release first-quarter 2024 results on May 22. The Zacks Consensus Estimate for NVDA’s earnings is pegged at $5.49 per share, indicating growth of 403.67% from the year-ago quarter’s reported figure.
Arista Networks ANET has an Earnings ESP of +2.49% and sports a Zacks Rank #1 at present.
ANET is set to report first-quarter 2024 results on May 7. The Zacks Consensus Estimate for the company’s earnings is pegged at $1.74 per share, indicating a rise of 21.68% from the year-ago quarter’s reported figure.
Docebo DCBO has an Earnings ESP of +8.00% and a Zacks Rank #3 at present.
Docebo is set to report first-quarter 2024 results on May 9. The Zacks Consensus Estimate for DCBO’s earnings is pegged at 17 cents per share, indicating growth of 88.89% from the year-ago quarter’s reported figure.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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NVIDIA Corporation (NVDA) : Free Stock Analysis Report
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Docebo Inc. (DCBO) : Free Stock Analysis Report
