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Electronic Arts (EA) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

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In its upcoming report, Electronic Arts (EA - Free Report) is predicted by Wall Street analysts to post quarterly earnings of $1.27 per share, reflecting a decline of 40.9% compared to the same period last year. Revenues are forecasted to be $1.86 billion, representing a year-over-year decrease of 10.4%.

Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.

That said, let's delve into the average estimates of some Electronic Arts metrics that Wall Street analysts commonly model and monitor.

Analysts predict that the 'Net revenue by composition- Live services and other- Non-GAAP (Net Bookings)' will reach $1.14 billion. The estimate indicates a change of -8.7% from the prior-year quarter.

The collective assessment of analysts points to an estimated 'Net revenue by composition- Full game- Full game downloads- Non-GAAP (Net Bookings)' of $479.41 million. The estimate indicates a year-over-year change of -12%.

Analysts forecast 'Net revenue by composition- Full game- Packaged goods- Non-GAAP (Net Bookings)' to reach $255.83 million. The estimate points to a change of -10.9% from the year-ago quarter.

The average prediction of analysts places 'Net Bookings' at $1.86 billion. The estimate is in contrast to the year-ago figure of $2.08 billion.

View all Key Company Metrics for Electronic Arts here>>>

Over the past month, shares of Electronic Arts have returned +20% versus the Zacks S&P 500 composite's +0.2% change. Currently, EA carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .


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