- 2Q Net Bookings: Expected between $1.95 billion and $2.05 billion. Estimate is $1.95 billion.
- 2025 Year Forecast:
- Net bookings still expected between $7.3 billion and $7.7 billion. Estimate is $7.49 billion.
- Operating cash flow still expected between $2.05 billion and $2.25 billion. Estimate is $2.08 billion.
- 1Q Results:
- Net bookings: $1.26 billion, a decrease of 20% year-over-year. Estimate was $1.21 billion.
- Total net revenue: $1.66 billion, down 14% year-over-year. Estimate was $1.63 billion.
- Live Services & Other revenue: $1.41 billion, down 4.8% year-over-year. Estimate was $1.33 billion.
- Full game revenue: $250 million, a drop of 44% year-over-year. Estimate was $294.8 million.
- R&D expenses: $629 million, an increase of 5.5% year-over-year. Estimate was $590.3 million.
- Operating cash flow: $120 million, a significant decline of 67% year-over-year.
- Comments: 1Q EPS was $1.04 compared to $1.47 year-over-year.
Electronic Arts on Smartkarma
Analyst coverage of Electronic Arts on Smartkarma by Baptista Research highlights positive sentiments towards the company’s recent performance and growth strategies. In the report “Electronic Arts Inc.: Are The AI Investments Speeding Up Their Game Creation? – Major Drivers,” it is noted that EA experienced unexpected growth in the past fiscal year, primarily driven by live services which enhanced consumer loyalty and spending. The successful launch of EA SPORTS FC further strengthened player engagement globally.
In another report by Baptista Research titled “Electronic Arts: A Tale Of Diversification and Expansion of Gaming Communities! – Major Drivers,” the company’s strong Q3 performance is emphasized, with notable success in EA Sports FC and EA Sports Madden NFL. The launch of EA Sports FC ’24 exceeded expectations, showcasing the company’s ability to capture global enthusiasm for football and drive long-term growth through deep engagement with millions of players worldwide.
A look at Electronic Arts Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 2 | |
| Dividend | 2 | |
| Growth | 4 | |
| Resilience | 4 | |
| Momentum | 4 | |
| OVERALL SMART SCORE | 3.2 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Electronic Arts Inc., a leading interactive entertainment software company, has been assigned Smartkarma Smart Scores that indicate a positive long-term outlook. With strong ratings in Growth, Resilience, and Momentum at 4 out of 5 each, Electronic Arts is poised for continued success in the video game industry. The Growth score highlights promising expansion opportunities, while the Resilience score suggests the company’s ability to withstand market challenges. Additionally, the Momentum score signifies a strong upward trend in the company’s performance.
While Electronic Arts received more moderate scores in Value and Dividend at 2 out of 5 each, the overall outlook remains optimistic. Investors looking for a company with robust growth potential and a strong market position may find Electronic Arts an attractive investment opportunity in the evolving gaming sector.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
Have feedback on this article? Concerned about the content? Get in touch with us directly.
💡 Before it’s here, it’s on Smartkarma
Sign Up for Free
The Smartkarma Preview Pass is your entry to the Independent Investment Research Network
- ✓ Unlimited Research Summaries
- ✓ Personalised Alerts
- ✓ Custom Watchlists
- ✓ Company Analytics and News
- ✓ Events & Webinars
