Electronic Arts (NASDAQ:EA) Updates Q3 Earnings Guidance

Electronic Arts (NASDAQ:EA) issued an update on its third quarter earnings guidance on Tuesday morning. The company provided earnings per share guidance of $0.85-1.02 for the period, compared to the consensus earnings per share 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.

Electronic Arts Price Performance

NASDAQ:EA traded up $1.71 during trading hours on Thursday, hitting $150.85. 2,645,647 shares of the company’s stock traded hands, compared to its average volume of 2,059,914. The firm has a market cap of $40.09 billion, a P/E ratio of 32.23, a P/E/G ratio of 1.97 and a beta of 0.79. Electronic Arts has a 52 week low of $121.63 and a 52 week high of $153.51. The business’s fifty day simple moving average is $144.89 and its two-hundred day simple moving average is $140.02. The company has a quick ratio of 1.45, a current ratio of 1.45 and a debt-to-equity ratio of 0.25.

Electronic Arts (NASDAQ:EA) last posted its quarterly earnings data on Tuesday, July 30th. The game software company reported $0.09 earnings per share (EPS) for the quarter, beating the consensus estimate of $0.03 by $0.06. The company had revenue of $1.26 billion during the quarter, compared to analyst estimates of $1.21 billion. Electronic Arts had a return on equity of 16.34% and a net margin of 15.77%. On average, research analysts anticipate that Electronic Arts will post 5.93 earnings per share for the current fiscal year.

Electronic Arts Dividend Announcement

The company also recently declared a quarterly dividend, which will be paid on Wednesday, December 18th. Shareholders of record on Wednesday, November 27th will be paid a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a yield of 0.50%. The ex-dividend date is Wednesday, November 27th. Electronic Arts’s dividend payout ratio (DPR) is currently 16.24%.

Wall Street Analysts Forecast Growth

A number of equities research analysts have recently weighed in on EA shares. Jefferies Financial Group started coverage on Electronic Arts in a research note on Thursday, July 11th. They issued a “buy” rating and a $165.00 target price for the company. UBS Group boosted their target price on Electronic Arts from $155.00 to $160.00 and gave the company a “neutral” rating in a research note on Wednesday. Deutsche Bank Aktiengesellschaft reissued a “hold” rating and issued a $160.00 target price on shares of Electronic Arts in a research note on Wednesday, September 18th. JPMorgan Chase & Co. lowered their target price on Electronic Arts from $155.00 to $150.00 and set a “neutral” rating for the company in a research note on Wednesday. Finally, Benchmark reissued a “buy” rating and issued a $163.00 target price on shares of Electronic Arts in a research note on Wednesday. Eight research analysts have rated the stock with a hold rating, twelve have given a buy rating and one has issued a strong buy rating to the company’s stock. Based on data from MarketBeat.com, Electronic Arts currently has a consensus rating of “Moderate Buy” and an average target price of $164.39.

Insider Transactions at Electronic Arts

In related news, CEO Andrew Wilson sold 2,500 shares of the company’s stock in a transaction that occurred on Monday, August 26th. The stock was sold at an average price of $148.88, for a total value of $372,200.00. Following the transaction, the chief executive officer now directly owns 56,747 shares of the company’s stock, valued at approximately $8,448,493.36. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. In related news, CEO Andrew Wilson sold 2,500 shares of the company’s stock in a transaction that occurred on Monday, August 26th. The stock was sold at an average price of $148.88, for a total value of $372,200.00. Following the transaction, the chief executive officer now directly owns 56,747 shares of the company’s stock, valued at approximately $8,448,493.36. This represents a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which can be accessed through this hyperlink. Also, EVP Jacob J. Schatz sold 1,500 shares of the company’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 value of $217,080.00. Following the completion of the transaction, the executive vice president now directly owns 24,860 shares in the company, valued at $3,597,739.20. This trade represents a 0.00 % decrease in their ownership of the stock. The disclosure for this sale can be found here. Insiders have sold a total of 24,770 shares of company stock valued at $3,652,410 in the last ninety days. 0.22% of the stock is currently owned by corporate 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.