Valued at a market cap of $38.5 billion, Electronic Arts Inc. (EA) develops, publishes, and markets games, content, and services for game consoles, PCs, mobile phones, and tablets. The California-based company generates revenues from the sale of disk-based video game products, downloadable content (DLCs), subscriptions, micro-transactions, and advertising. It is expected to announce its fiscal Q2 earnings results after the market closes on Tuesday, Oct. 29.
Ahead of this event, analysts expect the video game company to report a profit of $1.53 per share, up 53% from $1.00 per share in the year-ago quarter. The company has surpassed Wall Street's earnings estimates in three of the last four quarters while missing on another occasion. In Q1, the company’s adjusted EPS of $0.52 topped the consensus estimates by 20.9% but declined 54.4% on a yearly basis.
For fiscal 2025, analysts expect EA to report an EPS of $5.92, up 13.9% from $5.20 in fiscal 2024. Moreover, EPS is expected to increase 8.8% year-over-year to $6.44 in fiscal 2026.
Shares of EA have gained 6% on a YTD basis, underperforming both the S&P 500 Index's ($SPX) 21.8% rise and the Communication Services Select Sector SPDR ETF’s (XLC) 24.7% return over the same period.
Shares of EA closed up 1.2% following its Q1 earnings release on Jul. 30 as, along with its adjusted earnings, its revenue of $1.26 billion surpassed the consensus estimates by 3.87%. However, its revenue declined 13.7% from a year ago, primarily due to significantly lower full-game revenues. Its net bookings also declined 20% annually to $1.3 billion, but it exceeded the high end of the guidance range mainly due to stronger-than-expected performance across Madden NFL 24, FC Online, and FC Mobile.
Analysts' consensus view on Electronic Arts’ stock is moderately optimistic, with a "Moderate Buy" rating overall. Among 24 analysts covering the stock, 11 recommend a "Strong Buy," two suggest a "Moderate Buy," and 11 indicate a “Hold.” This configuration is more bullish than three months ago, with ten analysts suggesting a "Strong Buy."
The average analyst price target for EA is $160.92, indicating a nearly 11% potential upside from the current levels.
On the date of publication, Neharika Jain did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
