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Electronic Arts (EA) to Report Q2 Earnings: What's in Store?
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Electronic Arts (EA - Free Report) is set to report second-quarter fiscal 2021 results on Nov 5.
For the quarter, EA expects GAAP revenues of $1.125 billion.
The Zacks Consensus Estimate for second-quarter fiscal 2021 revenues is pegged at $955.6 million.
The company expects GAAP earnings to be 21 cents per share for the to-be reported quarter. EA had reported earnings of 83 cents per share in the year-ago quarter.
The consensus mark for earnings has remained steady at 2 cents per share over the past 30 days.
Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 31.56%.
Let’s see how things have shaped up prior to this announcement.
EA’s focus on adding updates to its games that feature exciting content makes the platform attractive to users. Moreover, coronavirus-led social distancing norms are expected to have been a major growth driver in increasing the number of active users in the to-be-reported quarter.
Solid popularity of gaming franchises like The Sims 4 and Apex Legends is expected to have benefited EA’s net bookings in the to-be-reported quarter. Notably, the company expects net bookings to be $875 million in the second quarter.
Additionally, the launch of The Sims 4 Star Wars: Journey to Batuu Game Pack and its newest game in the UFC franchise, EA SPORTS UFC 4 is expected to have contributed to active user engagement in the to-be-reported quarter.
Strong popularity of two well-recognized EA Sports franchises, FIFA and Madden NFL is expected to have contributed to top-line growth in the soon-to-be-reported quarter.
On Sep 3, EA announced that since the launch of Madden NFL 21 on Aug 28 for Xbox One, PS4 and PC, players have played nearly 50% more games compared to the first week of Madden NFL 20.
Moreover, strong video game spending in the quarter bodes well for EA. Per Venturebeat, which cited NPD data, U.S. video game sales in July, August and September increased 32%, 37% and 10%, respectively.
Further, EA's strength in Live Services from mobile games such as Madden Mobile, FIFA Mobile and Star Wars: Galaxy of Heroes is expected to have positively impacted the top line.
However, this Zacks Rank #3 (Hold) company faces stiff competition from the likes of Take Two Interactive Software (TTWO - Free Report) , Nintendo (NTDOY - Free Report) , Zynga and Activision Blizzard apart from Tencent and Epic Games.
Notably, Take Two’s Red Dead Redemption 2 and Borderlands 3 gained significant popularity. Moreover, Nintendo’s Animal Crossing: New Horizons gained substantial popularity within a short span of time.
Moreover, Activision’s Call of Duty: Black Ops 4, Call of Duty: Warzone and Call of Duty: Modern Warfare have been huge successes. Moreover, launched on Mar 10, Call of Duty: Warzone attracted more than 75 million players as of Aug 4.
Key Developments in Q2
The rebranding of EA’s subscription services that now offer more benefits and rewards for its users can be a game changer. Notably, the subscription services, EA Access and Origin Access Basic are now known as EA Play, with Origin Access Premier called EA Play Pro.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
Image: Bigstock
Electronic Arts (EA) to Report Q2 Earnings: What's in Store?
Electronic Arts (EA - Free Report) is set to report second-quarter fiscal 2021 results on Nov 5.
For the quarter, EA expects GAAP revenues of $1.125 billion.
The Zacks Consensus Estimate for second-quarter fiscal 2021 revenues is pegged at $955.6 million.
The company expects GAAP earnings to be 21 cents per share for the to-be reported quarter. EA had reported earnings of 83 cents per share in the year-ago quarter.
The consensus mark for earnings has remained steady at 2 cents per share over the past 30 days.
Notably, the company’s earnings beat the Zacks Consensus Estimate in the trailing four quarters, the average surprise being 31.56%.
Let’s see how things have shaped up prior to this announcement.
Electronic Arts Inc. Price and EPS Surprise
Electronic Arts Inc. price-eps-surprise | Electronic Arts Inc. Quote
Factors to Consider
EA’s focus on adding updates to its games that feature exciting content makes the platform attractive to users. Moreover, coronavirus-led social distancing norms are expected to have been a major growth driver in increasing the number of active users in the to-be-reported quarter.
Solid popularity of gaming franchises like The Sims 4 and Apex Legends is expected to have benefited EA’s net bookings in the to-be-reported quarter. Notably, the company expects net bookings to be $875 million in the second quarter.
Additionally, the launch of The Sims 4 Star Wars: Journey to Batuu Game Pack and its newest game in the UFC franchise, EA SPORTS UFC 4 is expected to have contributed to active user engagement in the to-be-reported quarter.
Strong popularity of two well-recognized EA Sports franchises, FIFA and Madden NFL is expected to have contributed to top-line growth in the soon-to-be-reported quarter.
On Sep 3, EA announced that since the launch of Madden NFL 21 on Aug 28 for Xbox One, PS4 and PC, players have played nearly 50% more games compared to the first week of Madden NFL 20.
Moreover, strong video game spending in the quarter bodes well for EA. Per Venturebeat, which cited NPD data, U.S. video game sales in July, August and September increased 32%, 37% and 10%, respectively.
Further, EA's strength in Live Services from mobile games such as Madden Mobile, FIFA Mobile and Star Wars: Galaxy of Heroes is expected to have positively impacted the top line.
However, this Zacks Rank #3 (Hold) company faces stiff competition from the likes of Take Two Interactive Software (TTWO - Free Report) , Nintendo (NTDOY - Free Report) , Zynga and Activision Blizzard apart from Tencent and Epic Games.
You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Notably, Take Two’s Red Dead Redemption 2 and Borderlands 3 gained significant popularity. Moreover, Nintendo’s Animal Crossing: New Horizons gained substantial popularity within a short span of time.
Moreover, Activision’s Call of Duty: Black Ops 4, Call of Duty: Warzone and Call of Duty: Modern Warfare have been huge successes. Moreover, launched on Mar 10, Call of Duty: Warzone attracted more than 75 million players as of Aug 4.
Key Developments in Q2
The rebranding of EA’s subscription services that now offer more benefits and rewards for its users can be a game changer. Notably, the subscription services, EA Access and Origin Access Basic are now known as EA Play, with Origin Access Premier called EA Play Pro.
The Hottest Tech Mega-Trend of All
Last year, it generated $24 billion in global revenues. By 2020, it's predicted to blast through the roof to $77.6 billion. Famed investor Mark Cuban says it will produce "the world's first trillionaires," but that should still leave plenty of money for regular investors who make the right trades early.
See Zacks' 3 Best Stocks to Play This Trend >>