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For third-quarter fiscal 2024, EA expects GAAP revenues between $1.825 billion and $2.025 billion and diluted earnings in the range of $0.75-$1.01 per share.
For the quarter, the Zacks Consensus Estimate for earnings has remained steady at $2.91 per share in the past 30 days. The figure indicates 7.38% growth from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $2.39 billion, suggesting a 1.86% increase from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed once, the average surprise being 12.95%.
Let’s see how things have shaped up for this announcement.
Steady demand for EA’s digital and live services across its portfolio is expected to have aided active user growth in the fiscal third quarter.
In the to-be-reported quarter, Electronic Arts announced the release of EA SPORTS NHL 24, the latest installment of the hockey game. EA also launched EA SPORTS WRC, the official game of the FIA World Rally Championship.
EA SPORTS UFC 5, the latest game of the martial arts franchise, was also released in the to-be-reported quarter.
Moreover, an increase in active users after the release of blockbuster games like EA SPORTS FIFA and Apex Legends is expected to have boosted net bookings growth in the to-be-reported quarter. Apex Legends Season 18 drove greater-than-anticipated player acquisition and monetization in the fiscal second quarter. The momentum is likely to have continued in the to-be-reported quarter.
On Oct 6, EA announced strong engagement of players in its EA SPORTS FC ecosystem, including both EA SPORTS FC 24 and EA SPORTS FC Mobile, in the first week after its launch.
Net bookings for the fiscal second quarter were $1.82 billion, up 3.8% year over year or 5% in constant currency.
The company expects net bookings between $2.25 billion and $2.45 billion in the fiscal third quarter of 2024. The Zacks Consensus Estimate for bookings is currently pegged at $2.383 billion, indicating a rise of 1.8% year over year.
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 and The Lord of the Rings: The Return of the King is expected to have positively impacted the top line.
In the to-be-reported quarter, EA announced the launch of EA SPORTS FC Tactical, a new mobile game that focuses on turn-based strategy.
However, the company 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.
Sluggishness in video game spending in the quarter is expected to have reflected in EA’s top-line growth. Per VentureBeat, which cited NPD data on consumer spending on video games, video game spending declined 5% in October and 7% in November. For the month of December, video game sales remained mostly even, with a slight 4% increase in total sales.
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 currently has an Earnings ESP of -2.65% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Apple is scheduled to release first-quarter fiscal 2024 results on Feb 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $2.08 per share, suggesting a jump of 10.6% from the prior-year quarter.
A. O. Smith (AOS - Free Report) has an Earnings ESP of +3.80% and a Zacks Rank #3 at present.
A. O. Smith is set to report its fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for AOS’ earnings is pegged at 95 cents per share, suggesting growth of 10.5% from the prior-year period’s reported figure.
Alphabet (GOOGL - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3 at present.
Alphabet is scheduled to release its fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for GOOGL’s earnings is pinned at $1.62 per share, indicating growth of 54.3% from the year-ago quarter.
Image: Bigstock
Electronic Arts (EA) to Report Q3 Earnings: What's in Store?
Electronic Arts (EA - Free Report) is set to report third-quarter fiscal 2024 results on Jan 30.
For third-quarter fiscal 2024, EA expects GAAP revenues between $1.825 billion and $2.025 billion and diluted earnings in the range of $0.75-$1.01 per share.
For the quarter, the Zacks Consensus Estimate for earnings has remained steady at $2.91 per share in the past 30 days. The figure indicates 7.38% growth from the year-ago quarter’s reported figure.
The consensus mark for revenues is pegged at $2.39 billion, suggesting a 1.86% increase from the year-ago quarter’s reported figure.
The company’s earnings beat the Zacks Consensus Estimate thrice in the trailing four quarters and missed once, the average surprise being 12.95%.
Let’s see how things have shaped up for this announcement.
Electronic Arts Inc. Price and EPS Surprise
Electronic Arts Inc. price-eps-surprise | Electronic Arts Inc. Quote
Factors to Consider
Steady demand for EA’s digital and live services across its portfolio is expected to have aided active user growth in the fiscal third quarter.
In the to-be-reported quarter, Electronic Arts announced the release of EA SPORTS NHL 24, the latest installment of the hockey game. EA also launched EA SPORTS WRC, the official game of the FIA World Rally Championship.
EA SPORTS UFC 5, the latest game of the martial arts franchise, was also released in the to-be-reported quarter.
Moreover, an increase in active users after the release of blockbuster games like EA SPORTS FIFA and Apex Legends is expected to have boosted net bookings growth in the to-be-reported quarter. Apex Legends Season 18 drove greater-than-anticipated player acquisition and monetization in the fiscal second quarter. The momentum is likely to have continued in the to-be-reported quarter.
On Oct 6, EA announced strong engagement of players in its EA SPORTS FC ecosystem, including both EA SPORTS FC 24 and EA SPORTS FC Mobile, in the first week after its launch.
Net bookings for the fiscal second quarter were $1.82 billion, up 3.8% year over year or 5% in constant currency.
The company expects net bookings between $2.25 billion and $2.45 billion in the fiscal third quarter of 2024. The Zacks Consensus Estimate for bookings is currently pegged at $2.383 billion, indicating a rise of 1.8% year over year.
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 and The Lord of the Rings: The Return of the King is expected to have positively impacted the top line.
In the to-be-reported quarter, EA announced the launch of EA SPORTS FC Tactical, a new mobile game that focuses on turn-based strategy.
However, the company 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.
Sluggishness in video game spending in the quarter is expected to have reflected in EA’s top-line growth. Per VentureBeat, which cited NPD data on consumer spending on video games, video game spending declined 5% in October and 7% in November. For the month of December, video game sales remained mostly even, with a slight 4% increase in total sales.
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 currently has an Earnings ESP of -2.65% and carries a Zacks Rank #2. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Apple (AAPL - Free Report) has an Earnings ESP of +2.13% and a Zacks Rank #3 at present. You can see the complete list of today's Zacks #1 Rank stocks here.
Apple is scheduled to release first-quarter fiscal 2024 results on Feb 1. The Zacks Consensus Estimate for AAPL’s earnings is pegged at $2.08 per share, suggesting a jump of 10.6% from the prior-year quarter.
A. O. Smith (AOS - Free Report) has an Earnings ESP of +3.80% and a Zacks Rank #3 at present.
A. O. Smith is set to report its fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for AOS’ earnings is pegged at 95 cents per share, suggesting growth of 10.5% from the prior-year period’s reported figure.
Alphabet (GOOGL - Free Report) has an Earnings ESP of +2.26% and a Zacks Rank #3 at present.
Alphabet is scheduled to release its fourth-quarter 2023 results on Jan 30. The Zacks Consensus Estimate for GOOGL’s earnings is pinned at $1.62 per share, indicating growth of 54.3% from the year-ago quarter.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.