Back to top

Image: Bigstock

Ahead of Electronic Arts (EA) Q3 Earnings: Get Ready With Wall Street Estimates for Key Metrics

Read MoreHide Full Article

Wall Street analysts forecast that Electronic Arts (EA - Free Report) will report quarterly earnings of $4.77 per share in its upcoming release, pointing to a year-over-year increase of 68.6%. It is anticipated that revenues will amount to $2.86 billion, exhibiting an increase of 28.9% compared to the year-ago quarter.

Over the last 30 days, there has been no revision in the consensus EPS estimate for the quarter. This signifies the covering analysts' collective reconsideration of their initial forecasts over the course of this timeframe.

Ahead of a company's earnings disclosure, it is crucial to give due consideration to changes in earnings estimates. These revisions serve as a noteworthy factor in predicting potential investor reactions to the stock. Numerous empirical studies consistently demonstrate a strong relationship between trends in earnings estimate revision and the short-term price performance of a stock.

While investors typically use consensus earnings and revenue estimates as a yardstick to evaluate the company's quarterly performance, scrutinizing analysts' projections for some of the company's key metrics can offer a more comprehensive perspective.

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

Based on the collective assessment of analysts, 'Net revenue by composition- Live services and other- Non-GAAP (Net Bookings)' should arrive at $1.66 billion. The estimate indicates a year-over-year change of +4.9%.

Analysts' assessment points toward 'Net revenue by composition- Full game- Full game downloads- Non-GAAP (Net Bookings)' reaching $867.40 million. The estimate suggests a change of +84.2% year over year.

The combined assessment of analysts suggests that 'Net revenue by composition- Full game- Packaged goods- Non-GAAP (Net Bookings)' will likely reach $265.61 million. The estimate points to a change of +64% from the year-ago quarter.

The collective assessment of analysts points to an estimated 'Net Bookings' of $2.90 billion. Compared to the present estimate, the company reported $2.22 billion in the same quarter last year.

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

Over the past month, shares of Electronic Arts have returned -0.2% versus the Zacks S&P 500 composite's +0.8% 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 >>>> .


See More Zacks Research for These Tickers


Normally $25 each - click below to receive one report FREE:


Electronic Arts Inc. (EA) - free report >>

Published in