What to Expect From Electronic Arts Earnings
Electronic Arts is scheduled to report its fiscal fourth-quarter financial results Tuesday after the markets close.
This post may contain links from our sponsors and affiliates, and Flywheel Publishing may receive compensation for actions taken through them.
Electronic Arts Inc. (NASDAQ: EA) will report its fiscal fourth-quarter financial results Tuesday after the markets have closed. Thomson Reuters has consensus estimates of $0.25 in earnings per share (EPS) on $850.23 million in revenue. In the same period of the previous year, the game maker posted EPS of $0.48 and $914.00 million in revenue.
Video games may be the new favorite pastime in America. Due to rising interest from the rest of the world, video game companies may face currency pressures similar to other international companies as well. A new research report highlights some of those currency risks and also addresses the prospects of these companies with a new slate of video games set to hit the shelves in the coming weeks and months.
Credit Suisse updated its estimates as it factors in the appreciation of the U.S. dollar versus the major global currencies. Currency headwinds are expected to account for a 2% to 5% decrease to revenue and adjusted earnings.
Credit Suisse made extensive changes to its longer term estimates for Electronic Arts:
- Added free-to-play versions of Need for Speed and Battlefield
- Removed long-term MMORPG products from the release slate for fiscal year 2020 and fiscal year 2021
- Increased growth trajectory for mobile game revenue by an incremental $100 million per year
- Explicit contribution from Madden Ultimate Team
ALSO READ: The 10 Most Valuable Comic Book Movie Franchises
It is also worth mentioning that this leading game developer should benefit from not only the continuing rise in new console sales, but the rising trend of mobile gaming. The company produces top-selling games and related content and services under the EA brand in various categories, including action-adventure, role-playing, racing and first-person shooter games. It is very well-known for its EA sports games like Madden Football. Electronic Arts has made the move into mobile play by adapting many of the top franchise titles, which have been popular for years, into the mobile arena.
Electronic Arts shares were down 0.8% at $58.85 on Tuesday afternoon ahead of earnings. The stock has a consensus analyst price target of $59.70 and a 52-week trading range of $28.03 to $60.63.
Contact [email protected] for any questions or corrections.
Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
His work has been quoted, or referenced by a number of outlets including Business Insider, USA Today, Yahoo Finance, MSN, The Motley Fool, and many other publications. A graduate of Southwestern University, he studied business with a focus on investments and has previous experience in banking and startups.
When not reading or writing the news, he is following his passion for Lacrosse, playing chess, or building solar projects with his dad.
