Electronic Arts (NASDAQ:EA) Updates Q2 Earnings Guidance

Electronic Arts (NASDAQ:EA) issued an update on its second quarter earnings guidance on Tuesday morning. The company provided EPS guidance of $0.76-0.93 for the period, compared to the consensus EPS estimate of $0.79. The company issued revenue guidance of $1.95-2.05 billion, compared to the consensus revenue estimate of $1.95 billion. Electronic Arts also updated its FY 2025 guidance to 6.890-7.700 EPS.

Electronic Arts Trading Up 1.2 %

Shares of EA stock traded up $1.82 during trading hours on Wednesday, reaching $150.94. 4,475,102 shares of the stock traded hands, compared to its average volume of 2,178,597. The company has a quick ratio of 1.37, a current ratio of 1.37 and a debt-to-equity ratio of 0.25. The firm has a market capitalization of $40.11 billion, a PE ratio of 32.25, a PEG ratio of 2.32 and a beta of 0.79. Electronic Arts has a 1-year low of $117.47 and a 1-year high of $153.51. The business has a fifty day moving average price of $139.61 and a 200 day moving average price of $135.82.

Electronic Arts (NASDAQ:EA) last posted its quarterly earnings results on Tuesday, May 7th. The game software company reported $0.92 earnings per share for the quarter, missing the consensus estimate of $1.09 by ($0.17). Electronic Arts had a net margin of 16.83% and a return on equity of 18.81%. The business had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.78 billion. On average, equities research analysts forecast that Electronic Arts will post 5.75 EPS for the current year.

Electronic Arts Dividend Announcement

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, September 18th. Shareholders of record on Wednesday, August 28th will be paid a $0.19 dividend. This represents a $0.76 annualized dividend and a yield of 0.50%. Electronic Arts’s dividend payout ratio is presently 16.24%.

Analyst Ratings Changes

EA has been the topic of a number of research reports. UBS Group upped their price target on shares of Electronic Arts from $143.00 to $155.00 and gave the stock a neutral rating in a research note on Wednesday. TD Cowen raised their price target on Electronic Arts from $163.00 to $183.00 and gave the stock a buy rating in a research note on Wednesday. The Goldman Sachs Group lifted their price target on Electronic Arts from $139.00 to $150.00 and gave the company a neutral rating in a report on Wednesday. Morgan Stanley increased their price objective on Electronic Arts from $140.00 to $150.00 and gave the stock an equal weight rating in a report on Tuesday, July 23rd. Finally, Wedbush lifted their target price on shares of Electronic Arts from $162.00 to $170.00 and gave the company an outperform rating in a research note on Wednesday. Ten investment analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the company. According to data from MarketBeat.com, Electronic Arts presently has a consensus rating of Moderate Buy and an average target price of $158.95.

Insider Buying and Selling at Electronic Arts

In related news, CEO Andrew Wilson sold 2,500 shares of the company’s stock in a transaction on Thursday, July 25th. The shares were sold at an average price of $142.42, for a total transaction of $356,050.00. Following the completion of the transaction, the chief executive officer now directly owns 59,247 shares in the company, valued at approximately $8,437,957.74. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. In related news, CEO Andrew Wilson sold 2,500 shares of the business’s stock in a transaction dated Thursday, July 25th. The stock was sold at an average price of $142.42, for a total transaction of $356,050.00. Following the transaction, the chief executive officer now directly owns 59,247 shares in the company, valued at $8,437,957.74. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available at this hyperlink. Also, EVP Jacob J. Schatz sold 1,000 shares of Electronic Arts stock in a transaction that occurred on Monday, July 15th. The stock was sold at an average price of $144.86, for a total value of $144,860.00. Following the sale, the executive vice president now directly owns 29,317 shares in the company, valued at approximately $4,246,860.62. The disclosure for this sale can be found here. Insiders have sold 23,239 shares of company stock valued at $3,197,469 in the last 90 days. 0.22% of the stock is currently owned by insiders.

Electronic Arts Company Profile

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands.