- Electronic Arts (EA) lowered its full-year net bookings forecast to $7 billion to $7.15 billion, from a previous forecast of $7.5 billion to $7.8 billion. Analysts had estimated $7.67 billion.
- Preliminary third-quarter net bookings came in at $2.22 billion, below the estimated $2.51 billion.
- EA’s preliminary total net revenue for the third quarter was approximately $1.88 billion, missing the $1.99 billion estimate.
- Preliminary earnings per share (EPS) for the third quarter was about $1.11.
- The company foresees a “mid-single-digit decline” in full year live services net bookings, in contrast to the previously expected “mid-single-digit growth.”
- The Global Football franchise experienced a slowdown, with early momentum in Q3 not sustaining, and is expected to end the fiscal year “down mid-single-digit” at the midpoint of the new outlook.
- During the third quarter, the Dragon Age game engaged around 1.5 million players, falling nearly 50% short of the company’s expectations.
- Both Dragon Age and EA SPORTS FC 25 underperformed against net bookings expectations in the third quarter.
- Despite current challenges, EA remains confident in its long-term strategy and anticipates a return to growth in fiscal year 2026.
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Electronic Arts on Smartkarma
Analysts on Smartkarma, such as Baptista Research, are closely monitoring Electronic Arts Inc., the gaming giant known for its popular EA SPORTS franchises. Baptista Research‘s reports highlight the company’s robust financial performance, with strong growth seen in the second quarter of fiscal year 2025. The successful launch of EA SPORTS College Football 25 and sustained momentum in American and global football segments have been key drivers of Electronic Arts‘ success.
In their analysis, Baptista Research emphasizes the importance of factors that could impact Electronic Arts‘ stock price in the near future. By employing a Discounted Cash Flow (DCF) methodology, the analysts aim to provide an independent valuation of the company. The positive sentiment reflected in these reports underscores Electronic Arts Inc.’s continued expansion, diversification of franchises, and solid execution across strategic initiatives, positioning the company favorably in the gaming industry.
A look at Electronic Arts Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 3.0 |
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., a global developer, publisher, and distributor of interactive entertainment software, is positioned for a promising long-term outlook based on the Smartkarma Smart Scores. With a notable Growth score of 4 and a strong Resilience score of 4, Electronic Arts demonstrates potential for sustained expansion and the ability to weather market fluctuations effectively. Additionally, the company’s respectable Momentum score of 3 indicates positive traction in the market. While the Value and Dividend scores are more moderate at 2, Electronic Arts‘ strengths in Growth, Resilience, and Momentum bode well for its future prospects.
Electronic Arts‘ focus on developing and distributing interactive entertainment software for various platforms, coupled with its provision of online game-related services, underpins its core business model. The company’s solid scores in Growth and Resilience reflect its ability to adapt to industry trends and maintain steady performance over time. With a balanced combination of strengths across different factors according to Smartkarma Smart Scores, Electronic Arts appears well-positioned to capitalize on growth opportunities and navigate challenges in the ever-evolving gaming industry.
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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