Electronic Arts (NASDAQ:EA) Releases Q3 Earnings Guidance

Electronic Arts (NASDAQ:EA) updated its third quarter earnings guidance on Tuesday. The company provided EPS guidance of $0.85-1.02 for the period, compared to the consensus EPS 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

Shares of EA traded up $0.69 during trading hours on Friday, reaching $151.54. The company had a trading volume of 532,311 shares, compared to its average volume of 2,052,714. The company has a current ratio of 1.43, a quick ratio of 1.45 and a debt-to-equity ratio of 0.25. Electronic Arts has a 12-month low of $124.92 and a 12-month high of $153.51. The firm has a 50 day simple moving average of $144.89 and a 200-day simple moving average of $140.02. The company has a market capitalization of $40.04 billion, a price-to-earnings ratio of 38.78, a PEG ratio of 2.04 and a beta of 0.79.

Electronic Arts (NASDAQ:EA) last issued its earnings results on Tuesday, July 30th. The game software company reported $0.09 earnings per share (EPS) for the quarter, beating analysts’ consensus estimates of $0.03 by $0.06. The company had revenue of $1.26 billion during the quarter, compared to analysts’ expectations of $1.21 billion. Electronic Arts had a net margin of 14.12% and a return on equity of 18.56%. Research analysts expect that Electronic Arts will post 5.93 earnings per share for the current year.

Electronic Arts Announces Dividend

The company also recently disclosed a quarterly dividend, which will be paid on Wednesday, December 18th. Investors of record on Wednesday, November 27th will be paid a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 0.50%. The ex-dividend date of this dividend is Wednesday, November 27th. Electronic Arts’s payout ratio is currently 19.54%.

Analyst Upgrades and Downgrades

Several brokerages have issued reports on EA. Robert W. Baird upped their price target on shares of Electronic Arts from $170.00 to $175.00 and gave the company an “outperform” rating in a report on Wednesday. JPMorgan Chase & Co. lowered their target price on Electronic Arts from $155.00 to $150.00 and set a “neutral” rating on the stock in a report on Wednesday. UBS Group boosted their price target on Electronic Arts from $155.00 to $160.00 and gave the stock a “neutral” rating in a report on Wednesday. Oppenheimer lifted their price objective on Electronic Arts from $150.00 to $170.00 and gave the stock an “outperform” rating in a research report on Tuesday, July 16th. Finally, Wedbush restated an “outperform” rating and issued a $170.00 target price on shares of Electronic Arts in a report on Friday, October 25th. Eight analysts have rated the stock with a hold rating, eleven have issued a buy rating and two have given a strong buy rating to the stock. According to MarketBeat, the stock has a consensus rating of “Moderate Buy” and an average price target of $164.39.

Insider Buying and Selling at Electronic Arts

In related news, insider Vijayanthimala Singh sold 7,384 shares of the stock in a transaction that occurred on Wednesday, August 28th. The shares were sold at an average price of $149.91, for a total transaction of $1,106,935.44. Following the completion of the sale, the insider now owns 31,190 shares of the company’s stock, valued at approximately $4,675,692.90. This represents a 0.00 % decrease in their position. The transaction was disclosed in a document filed with the Securities & Exchange Commission, which can be accessed through the SEC website. In related news, CEO Andrew Wilson sold 2,500 shares of the business’s stock in a transaction that occurred on Friday, October 25th. The stock was sold at an average price of $145.87, for a total transaction of $364,675.00. Following the transaction, the chief executive officer now directly owns 51,747 shares of the company’s stock, valued at approximately $7,548,334.89. The trade was a 0.00 % decrease in their position. The transaction was disclosed in a legal filing with the SEC, which is accessible through the SEC website. Also, insider Vijayanthimala Singh sold 7,384 shares of the stock in a transaction that occurred on Wednesday, August 28th. The shares were sold at an average price of $149.91, for a total transaction of $1,106,935.44. Following the completion of the sale, the insider now directly owns 31,190 shares of the company’s stock, valued at $4,675,692.90. This trade represents a 0.00 % decrease in their position. The disclosure for this sale can be found here. Over the last 90 days, insiders sold 22,644 shares of company stock valued at $3,340,377. 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.