Electronic Arts EA SPORTS announced a multi-year global partnership with PepsiCo PEP, wherein three renowned brands under PepsiCo (Pepsi, Gatorade, and Lay’s) will proudly become official partners of the highly-anticipated football gaming property, EA SPORTS FC.
PepsiCo and EA SPORTS FC have collaborated in a strategic partnership driven by a shared vision to influence the future of football fan culture. This collaboration aims to deliver gaming experiences that create moments of joy for modern football enthusiasts, and it allows PepsiCo to further develop its rich heritage within the football entertainment space.
PepsiCo’s impressive lineup of football talents, including notable names like Vini Jr and Leah Williamson, will serve as global ambassadors under the new partnership. These ambassadors will play a significant role in the upcoming initiatives, encompassing entertainment collaborations, in-game integrations, and promotional activities featured on product packaging.
Given the successful track record, PepsiCo brings a wealth of experience to the table, particularly in the realm of football. This makes PepsiCo the perfect choice as the food and beverage partner for the highly anticipated EA SPORTS FC brand.
EA’s Recent Partnerships to Aid Top Line
EA split with FIFA after a successful partnership that lasted for 30 years. This gaming company has already signed some important partnerships with CONMEBOL, La Liga, and many leagues around the world. These partnerships are expected to aid Electronic Arts’ top line in the upcoming quarters.
La Liga has entered into a new five-season strategic partnership with EA, marking the beginning of a new era for the competition. This collaboration marks a significant brand evolution for La Liga, encompassing strategic and positional changes. Moreover, it aims to enhance La Liga’s audiovisual broadcasting and digital ecosystem, bringing about a transformative shift in the overall experience of the competition.
CONMEBOL recently extended the existing partnership with EA SPORTS. Under this renewed partnership, EA SPORTS will continue to be the exclusive Sports Video Gaming Partner for CONMEBOL, allowing millions of fans worldwide to experience South America’s renowned football competitions as part of the new EA SPORTS FC brand ecosystem.
EA has secured partnerships with several prestigious leagues, such as the Premier League, La Liga, Bundesliga, Serie A, Ligue 1, WSL, and NWSL. With an extensive portfolio of licenses, the company has gained a significant advantage over its competitors, positioning itself as a leader in the industry.
The Zacks Consensus Estimate for second-quarter 2023 Net Revenue Composition: Full Game is pegged at $492 million, indicating an increase of 55.2% from the previous quarter’s reported figure. The consensus mark for full games downloads is pegged at 280 million, suggesting an increase of 18.14% from the year-ago quarter’s reported figure.
For fiscal 2024, Electronic Arts expects revenues in the range of $7.3-$7.7 billion and GAAP EPS of $3.30 to $3.81 per share.
The Zacks Consensus Estimate for EA’s first-quarter fiscal 2024 earnings is pegged at a profit of $1 per share, indicating year-over-year growth of 212.5%. The Zacks Consensus Estimate for revenues is pegged at $1.59 billion, indicating year-over-year growth of 22.14%.
Zacks Rank & Other Key Picks
Currently, EA carries a Zacks Rank #2 (Buy).
Shares of EA have gained 12.4% year to date compared with the Zacks Consumer Discretionary sector’s rise of 11.9% in the same period.
Cinemark CNK and Nexstar Media Group NXST are some other top-ranked stocks from the broader sector that investors can consider. Currently, CNK and NXST sport a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Shares of Cinemark have rallied 84.1% year to date. The Zacks Consensus Estimate for CNK’s 2023 revenues is pegged at $2.92 billion, indicating a year-over-year increase of 19.08%. The consensus mark for earnings is pegged at 52 cents per share, which has remained unchanged over the past 30 days.
Shares of Nexstar have increased 0.06% year to date. The Zacks Consensus Estimate for NXST’s 2023 revenues is pegged at $5.11 billion, indicating a year-over-year decline of 2.02%. The consensus mark for earnings is pegged at $2.88 per share, which has increased by 14 cents over the past 30 days.
PepsiCo, Inc. (PEP): Free Stock Analysis Report
Electronic Arts Inc. (EA): Free Stock Analysis Report
Nexstar Media Group, Inc (NXST): Free Stock Analysis Report
Cinemark Holdings Inc (CNK): Free Stock Analysis Report
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