Electronic Arts (NASDAQ:EA) Releases Quarterly Earnings Results, Misses Estimates By $1.07 EPS

Electronic Arts (NASDAQ:EA) issued its earnings results on Tuesday. The game software company reported $2.34 earnings per share (EPS) for the quarter, missing the consensus estimate of $3.41 by ($1.07), Zacks reports. Electronic Arts had a return on equity of 18.56% and a net margin of 14.12%. Electronic Arts updated its FY 2025 guidance to 6.250-6.650 EPS and its Q4 2025 guidance to 0.760-1.170 EPS.

Electronic Arts Trading Down 0.1 %

NASDAQ EA opened at $130.38 on Thursday. The company has a market cap of $34.20 billion, a price-to-earnings ratio of 33.37, a price-to-earnings-growth ratio of 2.50 and a beta of 0.79. Electronic Arts has a twelve month low of $115.21 and a twelve month high of $168.50. The business’s fifty day moving average is $145.31 and its 200 day moving average is $147.54. The company has a quick ratio of 1.43, a current ratio of 1.43 and a debt-to-equity ratio of 0.25.

Electronic Arts Dividend Announcement

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, March 19th. Investors of record on Wednesday, February 26th will be issued a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a dividend yield of 0.58%. The ex-dividend date is Wednesday, February 26th. Electronic Arts’s dividend payout ratio (DPR) is 19.34%.

Insider Activity at Electronic Arts

In related news, insider Vijayanthimala Singh sold 1,000 shares of the firm’s stock in a transaction that occurred on Monday, December 2nd. The stock was sold at an average price of $164.45, for a total transaction of $164,450.00. Following the transaction, the insider now directly owns 30,216 shares in the company, valued at $4,969,021.20. This trade represents a 3.20 % decrease in their position. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which is available through the SEC website. Also, CEO Andrew Wilson sold 5,000 shares of Electronic Arts stock in a transaction dated Wednesday, November 20th. The shares were sold at an average price of $166.47, for a total transaction of $832,350.00. Following the sale, the chief executive officer now directly owns 52,615 shares in the company, valued at $8,758,819.05. The trade was a 8.68 % decrease in their position. The disclosure for this sale can be found here. Insiders have sold 23,500 shares of company stock worth $3,562,510 in the last quarter. Company insiders own 0.22% of the company’s stock.

Analyst Ratings Changes

Several research analysts recently weighed in on the company. Benchmark lowered their price objective on Electronic Arts from $163.00 to $140.00 and set a “buy” rating for the company in a research report on Wednesday. Robert W. Baird lowered their price objective on shares of Electronic Arts from $175.00 to $158.00 and set an “outperform” rating for the company in a research note on Thursday, January 23rd. UBS Group raised their price objective on shares of Electronic Arts from $155.00 to $160.00 and gave the company a “neutral” rating in a research note on Wednesday, October 30th. Bank of America lifted their target price on Electronic Arts from $130.00 to $132.00 and gave the company a “neutral” rating in a report on Wednesday. Finally, Raymond James lowered Electronic Arts from an “outperform” rating to a “market perform” rating in a report on Thursday, January 23rd. Twelve equities research analysts have rated the stock with a hold rating and ten have issued a buy rating to the stock. According to MarketBeat.com, Electronic Arts currently has an average rating of “Hold” and a consensus target price of $155.24.

About Electronic Arts

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands.