Electronic Arts (NASDAQ:EA) Releases Q3 Earnings Guidance

Electronic Arts (NASDAQ:EA) updated its third quarter earnings guidance on Tuesday. The company provided earnings per share (EPS) guidance of $0.85-1.02 for the period, compared to the consensus estimate of $1.35. The company issued revenue guidance of $2.4-2.55 billion, compared to the consensus revenue estimate of $2.53 billion. Electronic Arts also updated its FY 2025 guidance to 7.040-7.650 EPS.

Analyst Ratings Changes

A number of research analysts have recently weighed in on the company. Raymond James raised their price objective on Electronic Arts from $155.00 to $170.00 and gave the company an “outperform” rating in a research report on Wednesday, July 31st. JPMorgan Chase & Co. cut their price objective on Electronic Arts from $155.00 to $150.00 and set a “neutral” rating for the company in a research report on Wednesday. BNP Paribas upgraded Electronic Arts to a “strong-buy” rating in a research report on Wednesday, October 9th. Jefferies Financial Group assumed coverage on Electronic Arts in a research report on Thursday, July 11th. They set a “buy” rating and a $165.00 price objective for the company. Finally, Citigroup lowered Electronic Arts from a “buy” rating to a “neutral” rating and raised their price objective for the company from $148.00 to $161.00 in a research report on Monday, July 15th. Eight equities research analysts have rated the stock with a hold rating, twelve have issued a buy rating and one has assigned a strong buy rating to the stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Moderate Buy” and a consensus target price of $164.39.

Electronic Arts Trading Up 1.1 %

NASDAQ EA traded up $1.71 during trading on Thursday, hitting $150.85. The stock had a trading volume of 2,645,647 shares, compared to its average volume of 2,059,914. The company has a debt-to-equity ratio of 0.25, a quick ratio of 1.45 and a current ratio of 1.45. The stock has a market capitalization of $40.09 billion, a price-to-earnings ratio of 32.23, a P/E/G ratio of 1.97 and a beta of 0.79. Electronic Arts has a one year low of $121.63 and a one year high of $153.51. The stock has a 50 day simple moving average of $144.89 and a 200 day simple moving average of $140.02.

Electronic Arts (NASDAQ:EA) last announced its quarterly earnings data on Tuesday, July 30th. The game software company reported $0.09 earnings per share (EPS) for the quarter, topping the consensus estimate of $0.03 by $0.06. The business had revenue of $1.26 billion during the quarter, compared to the consensus estimate of $1.21 billion. Electronic Arts had a net margin of 15.77% and a return on equity of 16.34%. Sell-side analysts predict that Electronic Arts will post 5.93 earnings per share for the current year.

Electronic Arts Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, December 18th. Stockholders of record on Wednesday, November 27th will be given a dividend of $0.19 per share. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.50%. The ex-dividend date of this dividend is Wednesday, November 27th. Electronic Arts’s dividend payout ratio (DPR) is presently 16.24%.

Insider Transactions at Electronic Arts

In other news, CEO Andrew Wilson sold 2,500 shares of the firm’s stock in a transaction that occurred on Wednesday, September 25th. The shares were sold at an average price of $141.50, for a total transaction of $353,750.00. Following the transaction, the chief executive officer now directly owns 54,247 shares of the company’s stock, valued at approximately $7,675,950.50. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. In other news, EVP Jacob J. Schatz sold 1,500 shares of the firm’s stock in a transaction that occurred on Tuesday, October 15th. The shares were sold at an average price of $144.72, for a total transaction of $217,080.00. Following the transaction, the executive vice president now directly owns 24,860 shares of the company’s stock, valued at approximately $3,597,739.20. This trade represents a 0.00 % decrease in their ownership of the stock. The sale was disclosed in a legal filing with the SEC, which can be accessed through this link. Also, CEO Andrew Wilson sold 2,500 shares of Electronic Arts stock in a transaction that occurred on Wednesday, September 25th. The shares were sold at an average price of $141.50, for a total transaction of $353,750.00. Following the transaction, the chief executive officer now directly owns 54,247 shares in the company, valued at approximately $7,675,950.50. The trade was a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Over the last three months, insiders have sold 24,770 shares of company stock valued at $3,652,410. 0.22% of the stock is currently owned by company insiders.

Electronic Arts Company Profile

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.