Electronic Arts (NASDAQ:EA) Releases FY25 Earnings Guidance

Electronic Arts (NASDAQ:EA) issued an update on its FY25 earnings guidance on Tuesday morning. The company provided EPS guidance of $3.34-4.00 for the period, compared to the consensus EPS estimate of $3.99. The company issued revenue guidance of $7.3-7.7 billion, compared to the consensus revenue estimate of $7.52 billion. Electronic Arts also updated its FY 2025 guidance to 6.890-7.700 EPS.

Electronic Arts Stock Up 0.9 %

Shares of EA traded up $1.27 during midday trading on Tuesday, reaching $149.12. 3,985,033 shares of the stock were exchanged, compared to its average volume of 2,161,995. Electronic Arts has a 12-month low of $117.47 and a 12-month high of $150.90. The firm has a 50 day simple moving average of $138.89 and a 200-day simple moving average of $135.63. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 0.25. The company has a market cap of $39.63 billion, a price-to-earnings ratio of 31.80, a P/E/G ratio of 2.28 and a beta of 0.79.

Electronic Arts (NASDAQ:EA) last posted its quarterly earnings results on Tuesday, May 7th. The game software company reported $0.92 earnings per share for the quarter, missing analysts’ consensus estimates of $1.09 by ($0.17). Electronic Arts had a return on equity of 18.81% and a net margin of 16.83%. The firm had revenue of $1.67 billion for the quarter, compared to analysts’ expectations of $1.78 billion. Research analysts forecast that Electronic Arts will post 5.75 EPS for the current year.

Electronic Arts Announces Dividend

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 18th. Investors of record on Wednesday, August 28th will be paid a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.51%. Electronic Arts’s payout ratio is 16.24%.

Wall Street Analysts Forecast Growth

A number of analysts have issued reports on the company. JPMorgan Chase & Co. raised their target price on Electronic Arts from $148.00 to $155.00 and gave the company a neutral rating in a report on Monday, July 15th. Roth Mkm raised their target price on Electronic Arts from $135.00 to $152.00 and gave the company a neutral rating in a report on Monday. Robert W. Baird decreased their price objective on Electronic Arts from $160.00 to $150.00 and set an outperform rating on the stock in a report on Wednesday, May 8th. Jefferies Financial Group started coverage on Electronic Arts in a report on Thursday, July 11th. They set a buy rating and a $165.00 price objective on the stock. Finally, BMO Capital Markets reissued an outperform rating and set a $154.00 price objective on shares of Electronic Arts in a report on Tuesday. Nine research analysts have rated the stock with a hold rating and eleven have given a buy rating to the company’s stock. According to data from MarketBeat.com, Electronic Arts presently has an average rating of Moderate Buy and an average target price of $153.50.

Insider Buying and Selling

In related news, insider Vijayanthimala Singh sold 800 shares of Electronic Arts stock in a transaction on Wednesday, May 1st. The stock was sold at an average price of $126.64, for a total transaction of $101,312.00. Following the completion of the sale, the insider now directly owns 26,283 shares of the company’s stock, valued at $3,328,479.12. The sale was disclosed in a legal filing with the SEC, which can be accessed through the SEC website. In other news, CEO Andrew Wilson sold 2,500 shares of the company’s stock in a transaction dated Thursday, July 25th. The stock was sold at an average price of $142.42, for a total transaction of $356,050.00. Following the completion of the transaction, the chief executive officer now directly owns 59,247 shares of the company’s stock, valued at $8,437,957.74. The transaction was disclosed in a legal filing with the Securities & Exchange Commission, which can be accessed through this link. Also, insider Vijayanthimala Singh sold 800 shares of the company’s stock in a transaction dated Wednesday, May 1st. The stock was sold at an average price of $126.64, for a total value of $101,312.00. Following the transaction, the insider now directly owns 26,283 shares of the company’s stock, valued at $3,328,479.12. The disclosure for this sale can be found here. Insiders sold a total of 26,039 shares of company stock valued at $3,555,081 over the last three months. Company insiders own 0.22% of the company’s stock.

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.