Electronic Arts (NASDAQ:EA) Announces Earnings Results

Electronic Arts (NASDAQ:EA) released its quarterly earnings data on Monday. The game software company reported $1.58 earnings per share for the quarter, beating analysts’ consensus estimates of $0.82 by $0.76, FiscalAI reports. The business had revenue of $1.99 billion during the quarter, compared to analyst estimates of $1.48 billion. Electronic Arts had a net margin of 11.78% and a return on equity of 23.41%.

Electronic Arts Stock Performance

Shares of NASDAQ EA traded down $0.21 during trading on Tuesday, reaching $209.70. 48,626,734 shares of the company traded hands, compared to its average volume of 2,613,220. The firm has a 50 day simple moving average of $205.21 and a 200-day simple moving average of $203.01. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.22. The stock has a market capitalization of $52.92 billion, a PE ratio of 60.09, a P/E/G ratio of 2.35 and a beta of 0.64. Electronic Arts has a 52-week low of $159.10 and a 52-week high of $210.20.

Insider Transactions at Electronic Arts

In related news, insider Vijayanthimala Singh sold 1,200 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $203.00, for a total value of $243,600.00. Following the sale, the insider owned 26,360 shares in the company, valued at approximately $5,351,080. This trade represents a 4.35% decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which can be accessed through the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Also, insider Laura Miele sold 2,500 shares of the business’s stock in a transaction on Monday, June 15th. The shares were sold at an average price of $203.10, for a total transaction of $507,750.00. Following the sale, the insider owned 73,513 shares of the company’s stock, valued at approximately $14,930,490.30. This represents a 3.29% decrease in their ownership of the stock. The disclosure for this sale is available in the SEC filing. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. Over the last three months, insiders sold 31,206 shares of company stock valued at $6,292,058. Company insiders own 0.24% of the company’s stock.

Institutional Trading of Electronic Arts

Hedge funds have recently bought and sold shares of the company. Brighton Jones LLC increased its position in shares of Electronic Arts by 9.4% during the 4th quarter. Brighton Jones LLC now owns 3,420 shares of the game software company’s stock valued at $500,000 after purchasing an additional 294 shares during the last quarter. Empowered Funds LLC grew its position in Electronic Arts by 167.0% during the first quarter. Empowered Funds LLC now owns 19,306 shares of the game software company’s stock valued at $2,790,000 after buying an additional 12,076 shares during the period. Geneos Wealth Management Inc. increased its holdings in Electronic Arts by 150.8% during the first quarter. Geneos Wealth Management Inc. now owns 316 shares of the game software company’s stock valued at $46,000 after buying an additional 190 shares during the last quarter. Jump Financial LLC bought a new position in Electronic Arts in the second quarter worth approximately $2,323,000. Finally, NewEdge Advisors LLC boosted its stake in shares of Electronic Arts by 96.4% during the 2nd quarter. NewEdge Advisors LLC now owns 3,067 shares of the game software company’s stock worth $490,000 after acquiring an additional 1,505 shares during the last quarter. Hedge funds and other institutional investors own 90.23% of the company’s stock.

Wall Street Analysts Forecast Growth

EA has been the topic of a number of recent analyst reports. Citigroup increased their price target on shares of Electronic Arts from $202.00 to $204.00 and gave the company a “neutral” rating in a report on Thursday, May 7th. Wall Street Zen upgraded shares of Electronic Arts to a “hold” rating in a report on Saturday, June 6th. Weiss Ratings raised Electronic Arts from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, May 18th. Argus downgraded Electronic Arts from a “buy” rating to a “hold” rating in a research note on Thursday, May 28th. Finally, Zacks Research lowered Electronic Arts from a “hold” rating to a “strong sell” rating in a report on Monday, July 13th. Two research analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have assigned a Sell rating to the company’s stock. According to data from MarketBeat.com, the stock presently has a consensus rating of “Hold” and a consensus price target of $201.42.

Key Electronic Arts News

Here are the key news stories impacting Electronic Arts this week:

• Positive Sentiment: Quarterly earnings beat estimates. EA reported fiscal first-quarter revenue of approximately $1.99 billion and diluted earnings per share of $1.58, versus analysts’ expectations of $1.48 billion and $0.82, respectively. Revenue increased 18.9% year over year, while operating profit and net income also rose sharply. Electronic Arts quarterly earnings
• Positive Sentiment: The acquisition has officially closed. The consortium of Saudi Arabia’s Public Investment Fund, Silver Lake and Affinity Partners completed its purchase of EA. Deal completion removes execution uncertainty and provides shareholders with the agreed transaction consideration. EA announces acquisition completion
• Neutral Sentiment: EA is no longer a public-market growth opportunity. Following the $55 billion sale, the company will be privately owned by the consortium, which includes Jared Kushner’s Affinity Partners. The closing may explain exceptionally heavy trading volume, but investors should no longer expect normal post-earnings price discovery or future upside from publicly traded EA shares. Electronic Arts completes sale
• Negative Sentiment: Bookings missed expectations. Quarterly bookings fell short of forecasts, with post-launch engagement declining for the Battlefield franchise. That weakness signals possible pressure on live-service performance and future growth, despite the strong reported revenue and EPS results. Electronic Arts misses bookings estimates

Electronic Arts Company Profile

Electronic Arts Inc (NASDAQ: EA) is a global interactive entertainment company headquartered in Redwood City, California. Founded in 1982 by Trip Hawkins, EA develops, publishes and distributes video games and related content for a variety of platforms, including consoles, personal computers and mobile devices. The company combines in-house development, partnerships and studio acquisitions to create and maintain a portfolio of entertainment properties and live-service experiences for players worldwide.

EA’s product lineup spans several well-known franchises and genres.