- For the fourth quarter, EA expects net bookings between $1.44 billion and $1.59 billion, which misses the estimated $1.65 billion.
- The adjusted EPS is forecasted between 76 cents and $1.17, below the estimate of $1.35.
- For the year, the adjusted EPS is expected to be between $6.25 and $6.65, slightly under the estimate of $6.69.
- The EPS for the year is projected to range from $3.90 to $4.25, aligning closely with prior guidance of $3.82 to $4.33.
- Operating cash flow is expected to be lower, between $1.8 billion and $1.9 billion, compared to the earlier guidance and estimate of $1.97 billion.
- EA maintains its annual net bookings forecast between $7 billion to $7.15 billion, with the upper range matching estimates.
- For the third quarter, net bookings were $2.22 billion, a 6.4% decrease year-over-year, slightly exceeding the $2.21 billion estimate.
- Total net revenue fell 3.2% year-over-year to $1.88 billion, missing the $1.98 billion estimate.
- Live Services & Other revenue declined 3.2% year-over-year to $1.28 billion, below the $1.36 billion estimate.
- Full game revenue decreased 3.1% year-over-year to $599 million, missing the $614.4 million estimate.
- R&D expenses increased by 3.8% year-over-year to $606 million, slightly below the expected $609.1 million.
- Income before provision for income taxes rose by 6% year-over-year to $405 million, nearly meeting the $408.9 million estimate.
- Adjusted EPS was recorded at $2.83, slightly below the $2.88 estimate.
- Operating cash flow decreased 7% year-over-year to $1.18 billion, surpassing the $1.05 billion estimate.
- Basic EPS came in at $1.11, compared to $1.07 in the previous year.
- EA announced plans for a $1 billion accelerated share repurchase, aiming for total repurchases of $2.5 billion in the first year of a $5 billion plan.
- A quarterly cash dividend of 19 cents per share was declared, just below the 20 cents projected.
- These results and information reflect EA’s preliminary third quarter outcomes as reported on January 22.
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Electronic Arts on Smartkarma
In analyst coverage on Smartkarma, Baptista Research provides bullish insights on Electronic Arts Inc. Two recent reports highlight the company’s strong performance in fiscal years 2025 quarters. The first report emphasizes the robust financial and strategic trajectory displayed in the second quarter, citing significant growth and an optimistic outlook driven by the success of EA SPORTS franchises, including EA SPORTS College Football 25. Baptista Research evaluates key factors impacting the company’s price and conducts an independent valuation using a Discounted Cash Flow (DCF) methodology.
The second report by Baptista Research praises Electronic Arts Inc.’s continued expansion and diversification of franchises in the first quarter of fiscal year 2025. The company exceeded net bookings guidance and demonstrated strong execution across strategic initiatives, propelled by flagship sports titles and active engagement in online communities. Financially, Electronic Arts had a solid quarter with Q1 net bookings surpassing expectations at $1.26 billion, mainly attributed to robust performances in core live services. These reports showcase a positive sentiment towards Electronic Arts‘ performance and growth prospects.
A look at Electronic Arts Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Analysts using the Smartkarma Smart Scores system have assigned Electronic Arts a mix of scores that present a positive long-term outlook for the gaming giant. With a strong emphasis on growth and resilience, Electronic Arts has received high scores in these areas. The company’s focus on creating innovative and engaging gaming experiences, coupled with its ability to weather market challenges, positions it well for future success in the dynamic gaming industry.
While Electronic Arts may not score as highly in terms of value and dividend, its above-average momentum score indicates positive market sentiment towards the company. Overall, with a solid foundation in growth and resilience, Electronic Arts is poised to continue its trajectory of delivering exciting gaming content and driving shareholder value in the long run.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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