- EA’s net bookings forecast for the first quarter falls short of estimates, projecting $1.15-$1.25 billion against a $1.45 billion estimate.
- The adjusted EPS (Earnings Per Share) forecast is also lower than estimate at 30c-50c, with the estimate at 80c.
- The projected net bookings for the year 2025 lie between $7.3 billion – $7.7 billion, less than the estimated $7.77 billion.
- The year 2025’s adjusted EPS is forecast to be between $7.05 to $7.85, close to the estimated $7.52.
- The company also sees an operating cash flow ranging from $2.05 billion to $2.25 billion, almost matching the estimated $2.16 billion.
- For the fourth quarter, EA reported net bookings of $1.67 billion, a 14% decrease year-on-year (y/y), missing the estimate of $1.77 billion.
- The total net revenue was $1.78 billion, seeing a year-on-year decline of 5.1%.
- Live Services & Other revenue was $1.45 billion, down 3.7% y/y and slightly short of the $1.47 billion estimate.
- Full game revenue declined 10% y/y to $333 million, surpassing the estimate of $323.3 million.
- R&D expenses were up 0.5% y/y to $638 million, a bit higher than the projected $634.1 million.
- Income before the provision for income taxes was $260 million, beating an estimate of $247.1 million.
- The adjusted EPS sat at $1.37, lower than the estimate of $1.52.
- EA reported an operating cash flow of $580 million, a decrease of 6% y/y, and less than the estimated $642.7 million.
- A new stock repurchase program has been authorized by EA, which involves $5 billion over the span of three years.
Electronic Arts on Smartkarma
Analysts at Baptista Research on Smartkarma have provided bullish insights on Electronic Arts, a global leader in digital interactive entertainment. In their report titled “Electronic Arts: A Tale Of Diversification and Expansion of Gaming Communities! – Major Drivers,” they highlight the company’s strong performance in Q3, driving deep engagement and record live services for millions of players worldwide. EA Sports FC and EA Sports Madden NFL are noted for their significant contributions to long-term growth, with the successful launch of EA Sports FC ’24 exceeding expectations and capturing global enthusiasm for football.
In another report titled “Electronic Arts Inc.: Expanding Engagement Opportunities,” Baptista Research discusses Electronic Arts‘ overall beat in the previous quarter, showcasing the company’s strength in the gaming industry. They emphasize the success of EA SPORTS in launching highly acclaimed interactive experiences like Madden NFL 24 and EA SPORTS FC 24. Looking forward, analysts anticipate sustained momentum for Electronic Arts with upcoming releases such as EA SPORTS NHL 24, EA SPORTS UFC 5, FC Tactical, and EA SPORTS College Football.
A look at Electronic Arts Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 3 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.8 |
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
Electronic Arts Inc. has been evaluated using the Smartkarma Smart Scores, with a mixed outlook across various factors. The company scores moderately on both Value and Dividend scores, indicating a stable but not necessarily standout performance in these areas. However, Electronic Arts shines brighter in terms of Growth and Momentum, with a solid score of 3 for both. This suggests that the company is positioned well for future expansion and has positive momentum in the market.
Moreover, Electronic Arts demonstrates a high level of Resilience with a score of 4, implying that the company is well-equipped to weather economic downturns or other challenges. Overall, based on the Smart Scores, Electronic Arts appears to have a promising long-term outlook, especially in terms of growth potential and overall market resilience.
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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