Wall Street analysts forecast that Electronic Arts (EA) will report quarterly earnings of $2.25 per share in its upcoming release, pointing to a year-over-year increase of 46.1%. It is anticipated that revenues will amount to $1.99 billion, exhibiting an increase of 10.8% compared to the year-ago quarter.
The consensus EPS estimate for the quarter has remained unchanged over the last 30 days. This represents how the covering analysts, as a whole, have reassessed their initial estimates during this timeframe.
Before a company announces its earnings, it is essential to take into account any changes made to earnings estimates. This is a valuable factor in predicting the potential reactions of investors toward the stock. Empirical research has consistently shown a strong correlation between trends in earnings estimate revisions and the short-term price performance of a stock.
While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.
Given this perspective, it's time to examine the average forecasts of specific Electronic Arts metrics that are routinely monitored and predicted by Wall Street analysts.
Analysts forecast 'Net revenue by composition- Live services and other- Non-GAAP (Net Bookings)' to reach $1.57 billion. The estimate indicates a year-over-year change of +11.3%.
The average prediction of analysts places 'Net revenue by composition- Full game- Full game downloads- Non-GAAP (Net Bookings)' at $368.25 million. The estimate indicates a change of +8.3% from the prior-year quarter.
Based on the collective assessment of analysts, 'Net revenue by composition- Full game- Packaged goods- Non-GAAP (Net Bookings)' should arrive at $55.97 million. The estimate indicates a year-over-year change of +27.2%.
The consensus among analysts is that 'Net Bookings' will reach $1.99 billion. The estimate is in contrast to the year-ago figure of $1.80 billion.
View all Key Company Metrics for Electronic Arts here>>>Shares of Electronic Arts have experienced a change of -0.5% in the past month compared to the +12.2% move of the Zacks S&P 500 composite. With a Zacks Rank #2 (Buy), EA is expected to outperform the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .
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