We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Electronic Arts (EA) Q4 Earnings and Revenues Decline Y/Y
Read MoreHide Full Article
Electronic Arts (EA - Free Report) reported fourth-quarter fiscal 2024 earnings of $1.37 per share, which declined 22.6% year over year. Revenues decreased 5.1% year over year to $1.77 billion due to weakness in Live services and other revenues.
The Zacks Consensus Estimate for earnings was pegged at $1.55 per share. The consensus mark for revenues was pinned at $1.78 billion.
Net bookings for the fiscal fourth quarter were $1.67 billion, down 14% year over year in both actual and constant currency.
Full-game net bookings for the quarter were $259 million, driven by slate timing. Live services net bookings were $1.41 billion.
Electronic Arts Inc. Price, Consensus and EPS Surprise
EA’s full-game revenues (18.7% of total revenues) decreased 10.5% year over year to $333 million. Full-game download revenues decreased 3% year over year to $265 million. Revenues from packaged goods plunged 31% year over year to $68 million.
Live services and other revenues (81.3% of total revenues) decreased 3.7% year over year to $1.44 billion.
Based on platforms, revenues from consoles decreased 4% year over year to $1.04 billion in the reported quarter. Revenues from PC & Other declined 10% year over year to $423 million. Revenues from the mobile platform decreased 3% year over year to $307 million.
Operating Details
EA’s GAAP gross profit declined 0.3% from the year-ago quarter’s levels to $1.42 billion. Gross margin expanded 380 basis points (bps) on a year-over-year basis to 79.9%.
Operating expenses decreased 5% year over year to $1.18 billion. As a percentage of revenues, operating expenses remained flat on a year-over-year basis at 66.8%.
Operating income on a GAAP basis increased 33.7% year over year to $234 million. The operating margin expanded 380 bps year over year to 13.2% in the reported quarter.
Balance Sheet and Cash Flow
As of Mar 31, 2024, EA had $3.2 billion in cash and short-term investments compared with $3.1 billion as of Dec 31, 2023.
For the trailing 12 months, net cash provided by operating activities was $2.315 billion, up 49% year over year.
The board has authorized a new stock repurchase program of $5 billion over three years. During full-year fiscal 2024, EA returned $1.505 billion to stockholders through stock repurchases and dividends.
The company has declared a quarterly cash dividend of 19 cents per share of its common stock. The dividend is payable on Jun 19 to shareholders of record as of the close of business on May 29.
Guidance
For first-quarter fiscal 2025, EA expects GAAP revenues between $1.575 billion and $1.675 billion and earnings per share (EPS) in the range of 73-90 cents. Net bookings are expected between $1.15 billion and $1.25 billion.
For fiscal 2025, EA expects revenues in the range of $7.1-$7.5 billion and earnings in the band of $3.34-$4 per share.
The company expects net bookings for the fiscal year between $7.3 billion and $7.7 billion.
Operating cash flow is estimated in the band of $2.05-$2.25 billion.
Roblox is scheduled to report first-quarter 2024 results on May 9. The Zacks Consensus Estimate for RBLX’s first-quarter loss per share has widened by a penny to 53 cents over the past 30 days.
SharkNinja is set to report first-quarter 2024 results on May 9. The Zacks Consensus Estimate for SN’s EPS is pegged at 95 cents, up 4.4% over the past 30 days.
Take-Two is slated to report first-quarter 2024 results on May 16. The Zacks Consensus Estimate for TTWO’s EPS is pegged at 22 cents, which has remained unchanged over the past 30 days.
Unique Zacks Analysis of Your Chosen Ticker
Pick one free report - opportunity may be withdrawn at any time
Image: Bigstock
Electronic Arts (EA) Q4 Earnings and Revenues Decline Y/Y
Electronic Arts (EA - Free Report) reported fourth-quarter fiscal 2024 earnings of $1.37 per share, which declined 22.6% year over year. Revenues decreased 5.1% year over year to $1.77 billion due to weakness in Live services and other revenues.
The Zacks Consensus Estimate for earnings was pegged at $1.55 per share. The consensus mark for revenues was pinned at $1.78 billion.
Net bookings for the fiscal fourth quarter were $1.67 billion, down 14% year over year in both actual and constant currency.
Full-game net bookings for the quarter were $259 million, driven by slate timing. Live services net bookings were $1.41 billion.
Electronic Arts Inc. Price, Consensus and EPS Surprise
Electronic Arts Inc. price-consensus-eps-surprise-chart | Electronic Arts Inc. Quote
Quarter Details
EA’s full-game revenues (18.7% of total revenues) decreased 10.5% year over year to $333 million. Full-game download revenues decreased 3% year over year to $265 million. Revenues from packaged goods plunged 31% year over year to $68 million.
Live services and other revenues (81.3% of total revenues) decreased 3.7% year over year to $1.44 billion.
Based on platforms, revenues from consoles decreased 4% year over year to $1.04 billion in the reported quarter. Revenues from PC & Other declined 10% year over year to $423 million. Revenues from the mobile platform decreased 3% year over year to $307 million.
Operating Details
EA’s GAAP gross profit declined 0.3% from the year-ago quarter’s levels to $1.42 billion. Gross margin expanded 380 basis points (bps) on a year-over-year basis to 79.9%.
Operating expenses decreased 5% year over year to $1.18 billion. As a percentage of revenues, operating expenses remained flat on a year-over-year basis at 66.8%.
Operating income on a GAAP basis increased 33.7% year over year to $234 million. The operating margin expanded 380 bps year over year to 13.2% in the reported quarter.
Balance Sheet and Cash Flow
As of Mar 31, 2024, EA had $3.2 billion in cash and short-term investments compared with $3.1 billion as of Dec 31, 2023.
For the trailing 12 months, net cash provided by operating activities was $2.315 billion, up 49% year over year.
The board has authorized a new stock repurchase program of $5 billion over three years. During full-year fiscal 2024, EA returned $1.505 billion to stockholders through stock repurchases and dividends.
The company has declared a quarterly cash dividend of 19 cents per share of its common stock. The dividend is payable on Jun 19 to shareholders of record as of the close of business on May 29.
Guidance
For first-quarter fiscal 2025, EA expects GAAP revenues between $1.575 billion and $1.675 billion and earnings per share (EPS) in the range of 73-90 cents. Net bookings are expected between $1.15 billion and $1.25 billion.
For fiscal 2025, EA expects revenues in the range of $7.1-$7.5 billion and earnings in the band of $3.34-$4 per share.
The company expects net bookings for the fiscal year between $7.3 billion and $7.7 billion.
Operating cash flow is estimated in the band of $2.05-$2.25 billion.
Zacks Rank & Stocks to Consider
EA currently carries a Zacks Rank #3 (Hold).
Some better-ranked stocks in the Consumer Discretionary sector are Roblox (RBLX - Free Report) , SharkNinja, Inc. (SN - Free Report) and Take-Two Interactive Software (TTWO - Free Report) , each carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Roblox is scheduled to report first-quarter 2024 results on May 9. The Zacks Consensus Estimate for RBLX’s first-quarter loss per share has widened by a penny to 53 cents over the past 30 days.
SharkNinja is set to report first-quarter 2024 results on May 9. The Zacks Consensus Estimate for SN’s EPS is pegged at 95 cents, up 4.4% over the past 30 days.
Take-Two is slated to report first-quarter 2024 results on May 16. The Zacks Consensus Estimate for TTWO’s EPS is pegged at 22 cents, which has remained unchanged over the past 30 days.