Electronic Arts (EA - Free Report) is set to report first-quarter fiscal 2023 results on Aug 2.
For first-quarter fiscal 2023, EA expects GAAP revenues between $1.675 billion and $1.725 billion and earnings of 75-85 cents per share.
For the quarter, the Zacks Consensus Estimate for earnings has remained unchanged at 28 cents per share in the past 30 days. The figure indicates a 53.9% decline from the year-ago quarter’s reported figure.
The consensus mark for revenues, pegged at $1.25 billion, suggests a 5.5% decrease from the year-ago quarter’s reported figure.
EA’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, missing the same in one and meeting in the other. EA has a trailing four-quarter earnings surprise of 5.64%, on average.
Let’s see how things have shaped up for this announcement.
Factors to Consider
Steady demand for EA’s digital and live services across its portfolio is expected to have boosted active user growth in the first quarter.
The company had released updates featuring exciting content in existing games in the fiscal fourth quarter, including the launch of Legacy of the Sith — the latest expansion for Star Wars: The Old Republic and the latest installment of its free-to-play mobile baseball franchise, MLB Tap Sports Baseball 2022, the first game released by Electronic Arts following its acquisition of Glu Mobile last year. These updates are expected to have boosted active user growth in the to-be-reported quarter.
In the last reported quarter, net bookings increased 17.5% year over year to $1.75 billion, reaching a new fourth-quarter high. However, the lack of major game releases and updates to the existing portfolio of games is expected to have dented net bookings growth in the to-be-reported quarter.
The company expects net bookings to be between $1.20 and $1.25 billion in the fiscal first quarter of 2023. The Zacks Consensus Estimate for bookings is currently pegged at $1.24 billion, indicating a decline of 7% year over year.
Notably, EA's strength in Live Services in mobile game franchises such as Battlefield 2042, It Takes Two, Madden Mobile, FIFA Mobile, Tetris, Star Wars: Galaxy of Heroes, The Lord of the Rings: The Return of the King is expected to have positively impacted the top line. Revenues from the mobile platform increased 82% year over year to $313 million in the last reported quarter.
However, EA has been witnessing increased operating expenses for game development and marketing. The rising expenses are expected to have kept margins under pressure in the to-be-reported quarter.
The decline in video game spending in the quarter is expected to have been reflected in EA’s top-line growth. Per VentureBeat, which cited NPD data, consumer spending on video games was down 8%, 19% and 11% year over year in April, May and June, respectively.
Key Q1 Highlights
On May 10, Electronic Arts announced that its world-famous football games will move forward under a new EA SPORTS FC brand in 2023. The move will enable EA to deliver the world’s biggest interactive sports experience for its growing community in collaboration with 300+ partners across the world of football.
On May 12, Electronic Arts ‘studio, Motive, announced that it would officially launch a remake of its classic sci-fi survival horror game, Dead Space, on Jan 27, 2023. The game, which has been built from the ground, leveraging the Frostbite game engine, will be available for PlayStation 5, Xbox Series X|S and PC.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
EA has an Earnings ESP of +10.69% and carries a Zacks Rank #4 (Sell) currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Per our model, MRC Global (MRC - Free Report) , Alcon (ALC - Free Report) and Grocery Outlet (GO - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
MRC Global is slated to report second-quarter 2022 results on Aug 8. The company has an Earnings ESP of +30.27% and a Zacks Rank #1 at present. MRC's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 140.8%. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MRC’s quarterly earnings is pegged at 25 cents per share, suggesting a whopping year-over-year surge of 212.5%. Its quarterly revenues are estimated to increase 23.4% year over year to $846.5 million.
Alcon has an Earnings ESP of +5.07% and a Zacks Rank #1. The company is scheduled to report second-quarter 2022 results on Aug 16. ALC's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.4%.
For the second quarter, the Zacks Consensus Estimate for Alcon’s earnings is pegged at 55 cents per share, indicating a 1.8% year-over-year decline. However, revenues are expected to grow 4.4% to $2.19 billion.
Grocery Outlet, has an Earnings ESP of +5.62% and sports a Zacks Rank #1. The company is slated to report its second-quarter 2022 results on Aug 9. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.8%.
The Zacks Consensus Estimate for GO’s second-quarter earnings stands at 24 cents per share, suggesting a year-over-year increase of 4.4%. GO anticipates revenues of $859.6 million, which suggests growth of 10.8% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Electronic Arts (EA - Free Report) is set to report first-quarter fiscal 2023 results on Aug 2.
For first-quarter fiscal 2023, EA expects GAAP revenues between $1.675 billion and $1.725 billion and earnings of 75-85 cents per share.
For the quarter, the Zacks Consensus Estimate for earnings has remained unchanged at 28 cents per share in the past 30 days. The figure indicates a 53.9% decline from the year-ago quarter’s reported figure.
The consensus mark for revenues, pegged at $1.25 billion, suggests a 5.5% decrease from the year-ago quarter’s reported figure.
EA’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, missing the same in one and meeting in the other. EA has a trailing four-quarter earnings surprise of 5.64%, on average.
Let’s see how things have shaped up for this announcement.
Factors to Consider
Steady demand for EA’s digital and live services across its portfolio is expected to have boosted active user growth in the first quarter.
The company had released updates featuring exciting content in existing games in the fiscal fourth quarter, including the launch of Legacy of the Sith — the latest expansion for Star Wars: The Old Republic and the latest installment of its free-to-play mobile baseball franchise, MLB Tap Sports Baseball 2022, the first game released by Electronic Arts following its acquisition of Glu Mobile last year. These updates are expected to have boosted active user growth in the to-be-reported quarter.
In the last reported quarter, net bookings increased 17.5% year over year to $1.75 billion, reaching a new fourth-quarter high. However, the lack of major game releases and updates to the existing portfolio of games is expected to have dented net bookings growth in the to-be-reported quarter.
The company expects net bookings to be between $1.20 and $1.25 billion in the fiscal first quarter of 2023. The Zacks Consensus Estimate for bookings is currently pegged at $1.24 billion, indicating a decline of 7% year over year.
Notably, EA's strength in Live Services in mobile game franchises such as Battlefield 2042, It Takes Two, Madden Mobile, FIFA Mobile, Tetris, Star Wars: Galaxy of Heroes, The Lord of the Rings: The Return of the King is expected to have positively impacted the top line. Revenues from the mobile platform increased 82% year over year to $313 million in the last reported quarter.
However, EA has been witnessing increased operating expenses for game development and marketing. The rising expenses are expected to have kept margins under pressure in the to-be-reported quarter.
The decline in video game spending in the quarter is expected to have been reflected in EA’s top-line growth. Per VentureBeat, which cited NPD data, consumer spending on video games was down 8%, 19% and 11% year over year in April, May and June, respectively.
Key Q1 Highlights
On May 10, Electronic Arts announced that its world-famous football games will move forward under a new EA SPORTS FC brand in 2023. The move will enable EA to deliver the world’s biggest interactive sports experience for its growing community in collaboration with 300+ partners across the world of football.
On May 12, Electronic Arts ‘studio, Motive, announced that it would officially launch a remake of its classic sci-fi survival horror game, Dead Space, on Jan 27, 2023. The game, which has been built from the ground, leveraging the Frostbite game engine, will be available for PlayStation 5, Xbox Series X|S and PC.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.
EA has an Earnings ESP of +10.69% and carries a Zacks Rank #4 (Sell) currently. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Per our model, MRC Global (MRC - Free Report) , Alcon (ALC - Free Report) and Grocery Outlet (GO - Free Report) have the right combination of elements to post an earnings beat in their upcoming releases.
MRC Global is slated to report second-quarter 2022 results on Aug 8. The company has an Earnings ESP of +30.27% and a Zacks Rank #1 at present. MRC's earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 140.8%. You can see the complete list of today's Zacks #1 Rank stocks here.
The Zacks Consensus Estimate for MRC’s quarterly earnings is pegged at 25 cents per share, suggesting a whopping year-over-year surge of 212.5%. Its quarterly revenues are estimated to increase 23.4% year over year to $846.5 million.
Alcon has an Earnings ESP of +5.07% and a Zacks Rank #1. The company is scheduled to report second-quarter 2022 results on Aug 16. ALC's earnings surpassed the Zacks Consensus Estimate in each of the trailing four quarters, the average surprise being 21.4%.
For the second quarter, the Zacks Consensus Estimate for Alcon’s earnings is pegged at 55 cents per share, indicating a 1.8% year-over-year decline. However, revenues are expected to grow 4.4% to $2.19 billion.
Grocery Outlet, has an Earnings ESP of +5.62% and sports a Zacks Rank #1. The company is slated to report its second-quarter 2022 results on Aug 9. Its earnings beat the Zacks Consensus Estimate in each of the preceding four quarters, the average surprise being 4.8%.
The Zacks Consensus Estimate for GO’s second-quarter earnings stands at 24 cents per share, suggesting a year-over-year increase of 4.4%. GO anticipates revenues of $859.6 million, which suggests growth of 10.8% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
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