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Electronic Arts (EA) to Report Q3 Earnings: What's in Store?
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Electronic Arts (EA - Free Report) is set to report third-quarter fiscal 2021 results on Feb 2.
For the quarter, EA expects GAAP revenues of $1.675 billion. The Zacks Consensus Estimate for third-quarter fiscal 2021 revenues is pegged at $2.376 million.
The company expects GAAP earnings to be 61 cents per share for the to-be reported quarter. EA had reported earnings of $1.18 per share in the year-ago quarter.
The consensus mark for earnings has remained steady at $1 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 365.82%.
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 $2.35 billion in the fiscal third quarter.
Moreover, net bookings are expected to have benefited from the worldwide launch of EA SPORTS FIFA 21 on Oct 9, featuring robust career mode with over 3.6 million players already in the game.
Additionally, the launch of Need for Speed Hot Pursuit Remastered and EA’s latest team-based multiplayer space shooter Star Wars: Squadrons is expected to have contributed to active user engagement in the to-be-reported quarter.
Strong popularity of two well-recognized EA Sports franchises, NHL and Madden NFL is expected to have contributed to top-line growth in the soon-to-be-reported quarter. The company expanded its franchise portfolio with the launch of Madden NFL 21 and EA SPORTS NHL 21 in the to-be reported quarter.
Moreover, strong video game spending in the quarter bodes well for EA. Per Venturebeat, which cited NPD data, U.S. video game sales in October, November and December increased 14%, 35% and 25%, respectively.
Further, EA's strength in Live Services in 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 in the quarter. Moreover, Nintendo’s Animal Crossing: New Horizons has 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. Markedly, Activision’s Call of Duty: Mobile generated more than $14 million in player spending in the first week of its release, per a report by Sensor Tower.
Key Developments in Q3
On Nov 5, EA announced a multi-year partnership renewal with the National Hockey League (NHL), and the NHL Players Association (NHLPA).
Moreover, the company renewed its multi-year partnership with UFC to continue to deliver authentic and innovative mixed martial arts (MMA) games.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
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Electronic Arts (EA) to Report Q3 Earnings: What's in Store?
Electronic Arts (EA - Free Report) is set to report third-quarter fiscal 2021 results on Feb 2.
For the quarter, EA expects GAAP revenues of $1.675 billion. The Zacks Consensus Estimate for third-quarter fiscal 2021 revenues is pegged at $2.376 million.
The company expects GAAP earnings to be 61 cents per share for the to-be reported quarter. EA had reported earnings of $1.18 per share in the year-ago quarter.
The consensus mark for earnings has remained steady at $1 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 365.82%.
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 $2.35 billion in the fiscal third quarter.
Moreover, net bookings are expected to have benefited from the worldwide launch of EA SPORTS FIFA 21 on Oct 9, featuring robust career mode with over 3.6 million players already in the game.
Additionally, the launch of Need for Speed Hot Pursuit Remastered and EA’s latest team-based multiplayer space shooter Star Wars: Squadrons is expected to have contributed to active user engagement in the to-be-reported quarter.
Strong popularity of two well-recognized EA Sports franchises, NHL and Madden NFL is expected to have contributed to top-line growth in the soon-to-be-reported quarter. The company expanded its franchise portfolio with the launch of Madden NFL 21 and EA SPORTS NHL 21 in the to-be reported quarter.
Moreover, strong video game spending in the quarter bodes well for EA. Per Venturebeat, which cited NPD data, U.S. video game sales in October, November and December increased 14%, 35% and 25%, respectively.
Further, EA's strength in Live Services in 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 in the quarter. Moreover, Nintendo’s Animal Crossing: New Horizons has 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. Markedly, Activision’s Call of Duty: Mobile generated more than $14 million in player spending in the first week of its release, per a report by Sensor Tower.
Key Developments in Q3
On Nov 5, EA announced a multi-year partnership renewal with the National Hockey League (NHL), and the NHL Players Association (NHLPA).
Moreover, the company renewed its multi-year partnership with UFC to continue to deliver authentic and innovative mixed martial arts (MMA) games.
Looking for Stocks with Skyrocketing Upside?
Zacks has just released a Special Report on the booming investment opportunities of legal marijuana.
Ignited by referendums and legislation, this industry is expected to blast from an already robust $17.7 billion in 2019 to a staggering $73.6 billion by 2027. Early investors stand to make a killing, but you have to be ready to act and know just where to look.
See the pot stocks we're targeting >>