Electronic Arts to Post Q3 Earnings: What's in Store for the Stock?

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Electronic Arts EA is set to report its third-quarter fiscal 2025 results on Feb. 04.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

For the third quarter of fiscal 2025, EA expects GAAP revenues of $1.88 billion.

The Zacks Consensus Estimate for fiscal third-quarter revenues is pegged at $2.25 billion, indicating a decline of 4.79% from the figure reported in the year-ago quarter.

Electronic Arts Inc. Price and EPS Surprise

 

Electronic Arts Inc. Price and EPS Surprise
Electronic Arts Inc. Price and EPS Surprise

Electronic Arts Inc. price-eps-surprise | Electronic Arts Inc. Quote

Electronic Arts anticipates earnings of $1.11 per share.

The consensus mark for fiscal third-quarter earnings is pegged at $2.99 per share, suggesting an increase of 1.01% from the year-ago reported figure. The earnings estimate has moved down 12.3% over the past 30 days.

Let us see how things have shaped up for the upcoming announcement.

Factors to consider

Electronic Arts' strong performance with its sports franchises, particularly with the launch of Madden NFL 25, which featured enhanced audio and visual elements, and the success of College Football 25 as the best-selling HD title in North America, has notably contributed to both commercial success and cultural impacts in sports entertainment. These achievements are likely to have boosted the franchise’s popularity in the third quarter of fiscal 2025.

The introduction of the EA SPORTS APP shows EA's commitment to leveraging data and technology to create new tools for simulations and community-driven creation. This helps engage core fans and attract a generation of sports fans. This trend is expected to have continued in the to-be-reported quarter.

Electronic Arts' emphasis on crafting immersive content, captivating storytelling and leveraging community engagement across various platforms has set it up for sustained growth. In the near term, the focus is on expanding and engaging large online communities, introducing the latest ways to play, and developing innovative gameplay experiences. This is anticipated to have continued in the third quarter of fiscal 2025.

EA’s Team Builder, along with its creation and customization of the UGX suite, is expected to have significantly enhanced the customer experience and contributed to revenue growth in the third quarter of fiscal 2025. The company’s strategic focus on boosting engagement and monetization is poised to deliver strong value for investors.

The video game publishing industry is highly competitive, with EA facing tough competition from Take-Two Interactive and Microsoft, among others. The pressure from these competitors is expected to have strained the profit margin and market share of Electronic Arts in the to-be-reported quarter.