- Full-Year Forecast:
- Electronic Arts expects net bookings between $7.6 billion and $8 billion, with estimates at $7.8 billion.
- Anticipated earnings per share (EPS) are between $3.09 and $3.79.
- Operating cash flow is projected to be between $2.2 billion and $2.4 billion, estimated at $2.29 billion.
- Second Quarter Forecast:
- Net bookings are expected to range from $1.8 billion to $1.9 billion, with estimates at $2.04 billion.
- EPS forecasted between 29 cents and 46 cents.
- GAAP operating expenses are projected between $1.215 billion and $1.235 billion.
- Expense growth mainly due to marketing for new launches, specifically Battlefield 6.
- First Quarter Results:
- Net bookings reached $1.30 billion, a 2.9% increase year-over-year, surpassing the $1.24 billion estimate.
- Total net revenue was $1.67 billion, a 0.7% rise year-over-year, exceeding the $1.56 billion estimate.
- Live Services & Other revenue came in at $1.38 billion, a 2% decline year-over-year, yet surpassing the $1.1 billion estimate.
- Full game revenue hit $289 million, marking a 16% growth year-over-year, ahead of the $221.1 million estimate.
- Operating cash flow was reported at $17 million, an 86% decrease year-over-year, below the $86.2 million estimate.
- EPS was 79 cents compared to $1.04 in the previous year.
- Additional Insights:
- Comment from CFO Stuart Canfield emphasizes strong fundamentals and confidence in full-year guidance.
- The second quarter net bookings guidance is impacted by EA SPORTS FC 26 Ultimate Edition content delays, expected to be recognized in Q3.
- The company anticipates normalized sales for College Football full game, with a positive offset from Madden NFL 26 launch.
- Early momentum is expected from Apex Legends and ongoing catalog sales.
“`
Electronic Arts on Smartkarma
On Smartkarma, independent investment research analysts, including those from Baptista Research, have been covering Electronic Arts (EA) by publishing insightful research reports. Baptista Research‘s recent coverage delves into EA’s strategic moves and financial performance. In the report titled “Electronic Arts’ Secret Weapon: Can Live Services Really Power Explosive Growth Ahead?”, the analyst highlights EA’s strong financial performance in the last quarter of fiscal year 2025, emphasizing the company’s robust position in the gaming industry. The report also discusses the positive turnaround in EA’s EA SPORTS FC franchise, indicating potential growth ahead.
In another report by Baptista Research titled “Electronic Arts’ (EA) Plans to Capitalize on the Next Gaming Boom – The Live-Service Shift That Could Change the Industry Forever!”, the analyst reflects on EA’s mixed third-quarter fiscal 2025 performance. Despite facing challenges with financial performance below expectations and underperformance of key franchises like “Dragon Age: The Veilguard,” the report highlights EA’s strategies to capitalize on the live-service shift in the gaming industry. This analysis suggests that EA is positioning itself to adapt and thrive in a changing gaming landscape.
A look at Electronic Arts Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| 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
Electronic Arts Inc. is set to navigate a promising long-term path based on Smartkarma’s Smart Scores. With a strong Growth score of 4, the company is positioned well for expansion and development in the interactive entertainment sector. Additionally, boasting Resilience and Momentum scores of 4 each, Electronic Arts demonstrates a robust ability to withstand challenges and maintain a positive trajectory in the market. Although the Value and Dividend scores are at 2, indicating room for improvement in these areas, the overall outlook remains positive for Electronic Arts as it continues to innovate and capture market opportunities.
Electronic Arts Inc., a global leader in interactive entertainment software, is backed by Smartkarma’s favorable Smart Scores across key factors. The company’s focus on growth, coupled with its resilience and momentum, positions it as a strong player in the industry. While there is room for improvement in terms of value and dividends, Electronic Arts‘ core business of developing, publishing, and distributing branded interactive entertainment software worldwide, along with its provision of online game-related services, underpins its potential for sustained success 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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