Electronic Arts (EA - Free Report) is scheduled to report first-quarter fiscal 2019 results on Jul 27.
The company beat the Zack Consensus Estimate in all the trailing four quarters, delivering an average positive surprise of 26.79%.
In the last reported quarter, EA’s non-GAAP earnings of $1.31 per share beat the Zacks Consensus Estimate of $1.15 and increased nearly 81.9% from the year-ago quarter.
Net bookings came in at $1.255 billion, up 14.9% year over year and surpassed the Zacks Consensus Estimate of $1.230 billion.
For the first quarter, the company expects GAAP revenues of $1.080 billion. Net bookings are expected to be $720 million, down 3.8% from the year-ago quarter, attributed to the decline in net bookings for packaged goods due to the ongoing shift to digital platforms.
Key Factors to Watch Out For
EA is well positioned to benefit from its digital business, primarily boosted by live services and strong mobile business. Notably, live services increased 37% to $698 million driven by Ultimate Team, Battlefield 1 and The Sims 4 in the last reported quarter and is expected to be the key growth driver.
The company has been benefiting from the ongoing shift of physical to digital versions of video games. Therefore, to cash in on the booming digital games market, EA plans to expand its mobile portfolio after the success of Star Wars: Galaxy of Heroes and FIFA Mobile.
EA’s foray into the growing e-sports market is a significant move for the company, as increasing viewership is expected to drive user base. These initiatives will help the company secure its market position against the likes of Activision , Take Two (TTWO - Free Report) and Glu Mobile.
We believe that the company’s continued efforts to service its users by bringing in new features and games will drive growth.
However, the hit driven and competitive nature of the video game industry begets caution. Rise in operating expense, mainly due to higher investments in games and live services, is expected to keep margins under pressure.
Electronic Arts Inc. Price and Consensus
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.
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Electronic Arts (EA - Free Report) is scheduled to report first-quarter fiscal 2019 results on Jul 27.
The company beat the Zack Consensus Estimate in all the trailing four quarters, delivering an average positive surprise of 26.79%.
In the last reported quarter, EA’s non-GAAP earnings of $1.31 per share beat the Zacks Consensus Estimate of $1.15 and increased nearly 81.9% from the year-ago quarter.
Net bookings came in at $1.255 billion, up 14.9% year over year and surpassed the Zacks Consensus Estimate of $1.230 billion.
For the first quarter, the company expects GAAP revenues of $1.080 billion. Net bookings are expected to be $720 million, down 3.8% from the year-ago quarter, attributed to the decline in net bookings for packaged goods due to the ongoing shift to digital platforms.
Key Factors to Watch Out For
EA is well positioned to benefit from its digital business, primarily boosted by live services and strong mobile business. Notably, live services increased 37% to $698 million driven by Ultimate Team, Battlefield 1 and The Sims 4 in the last reported quarter and is expected to be the key growth driver.
The company has been benefiting from the ongoing shift of physical to digital versions of video games. Therefore, to cash in on the booming digital games market, EA plans to expand its mobile portfolio after the success of Star Wars: Galaxy of Heroes and FIFA Mobile.
EA’s foray into the growing e-sports market is a significant move for the company, as increasing viewership is expected to drive user base. These initiatives will help the company secure its market position against the likes of Activision , Take Two (TTWO - Free Report) and Glu Mobile.
We believe that the company’s continued efforts to service its users by bringing in new features and games will drive growth.
However, the hit driven and competitive nature of the video game industry begets caution. Rise in operating expense, mainly due to higher investments in games and live services, is expected to keep margins under pressure.
Electronic Arts Inc. Price and Consensus
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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