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 earnings per share (EPS) guidance of $0.76-0.93 for the period, compared to the consensus 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.

Analysts Set New Price Targets

A number of research analysts recently weighed in on EA shares. UBS Group raised their price target on shares of Electronic Arts from $143.00 to $155.00 and gave the company a neutral rating in a research note on Wednesday. Deutsche Bank Aktiengesellschaft cut their target price on Electronic Arts from $153.00 to $150.00 and set a hold rating for the company in a research note on Thursday, May 9th. Raymond James lifted their price target on shares of Electronic Arts from $155.00 to $170.00 and gave the company an outperform rating in a research report on Wednesday. Bank of America increased their target price on shares of Electronic Arts from $150.00 to $170.00 and gave the stock a buy rating in a research note on Wednesday. Finally, BMO Capital Markets reissued an outperform rating and issued a $154.00 price target on shares of Electronic Arts in a research note on Tuesday. Ten research analysts have rated the stock with a hold rating and thirteen have issued a buy rating to the stock. Based on data from MarketBeat, the company has a consensus rating of Moderate Buy and an average target price of $158.95.

Electronic Arts Stock Performance

NASDAQ EA traded up $1.82 during trading hours on Wednesday, hitting $150.94. The company had a trading volume of 4,475,102 shares, compared to its average volume of 2,178,597. The business has a 50 day moving average of $139.61 and a 200-day moving average of $135.82. The company has a market cap of $40.11 billion, a PE ratio of 32.25, a price-to-earnings-growth 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 company has a debt-to-equity ratio of 0.25, a quick ratio of 1.37 and a current ratio of 1.37.

Electronic Arts (NASDAQ:EA) last announced its 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). The business had revenue of $1.67 billion for the quarter, compared to analyst estimates of $1.78 billion. Electronic Arts had a return on equity of 18.81% and a net margin of 16.83%. As a group, equities research analysts expect that Electronic Arts will post 5.75 EPS for the current year.

Electronic Arts Announces Dividend

The firm also recently declared a quarterly dividend, which will be paid on Wednesday, September 18th. Investors of record on Wednesday, August 28th will be paid a $0.19 dividend. This represents a $0.76 dividend on an annualized basis and a dividend yield of 0.50%. Electronic Arts’s dividend payout ratio (DPR) is presently 16.24%.

Insider Activity at Electronic Arts

In other news, insider Vijayanthimala Singh sold 800 shares of the business’s stock in a transaction that occurred on Monday, June 3rd. The stock was sold at an average price of $132.88, for a total transaction of $106,304.00. Following the sale, the insider now owns 39,374 shares of the company’s stock, valued at approximately $5,232,017.12. The sale was disclosed in a filing with the Securities & Exchange Commission, which is available through this hyperlink. In other Electronic Arts news, EVP Jacob J. Schatz sold 1,000 shares of Electronic Arts stock in a transaction dated Wednesday, May 15th. The shares were sold at an average price of $127.15, for a total transaction of $127,150.00. Following the completion of the transaction, the executive vice president now owns 17,426 shares in the company, valued at $2,215,715.90. The sale was disclosed in a document filed with the SEC, which is accessible through this hyperlink. Also, insider Vijayanthimala Singh sold 800 shares of the stock in a transaction that occurred on Monday, June 3rd. The shares were sold at an average price of $132.88, for a total transaction of $106,304.00. Following the completion of the sale, the insider now owns 39,374 shares in the company, valued at $5,232,017.12. The disclosure for this sale can be found here. Insiders sold 23,239 shares of company stock worth $3,197,469 over the last 90 days. Company insiders own 0.22% of the company’s stock.

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.