Electronic Arts (NASDAQ:EA) Updates Q1 Earnings Guidance

Electronic Arts (NASDAQ:EA) issued an update on its first quarter earnings guidance on Tuesday morning. The company provided earnings per share guidance of $0.73-0.90 for the period, compared to the consensus earnings per share estimate of $0.81. The company issued revenue guidance of $1.15-1.25 billion, compared to the consensus revenue estimate of $1.43 billion. Electronic Arts also updated its FY25 guidance to $3.34-4.00 EPS.

Electronic Arts Stock Performance

NASDAQ:EA traded down $0.32 during midday trading on Tuesday, reaching $130.24. The stock had a trading volume of 3,301,501 shares, compared to its average volume of 1,987,594. The stock has a market cap of $34.82 billion, a P/E ratio of 32.89, a P/E/G ratio of 1.73 and a beta of 0.78. Electronic Arts has a 12-month low of $117.47 and a 12-month high of $144.53. The firm has a fifty day simple moving average of $131.75 and a two-hundred day simple moving average of $134.50. The company has a quick ratio of 1.33, a current ratio of 1.33 and a debt-to-equity ratio of 0.25.

Electronic Arts Announces Dividend

The business also recently announced a quarterly dividend, which will be paid on Wednesday, June 19th. Shareholders of record on Wednesday, May 29th will be given a dividend of $0.19 per share. This represents a $0.76 annualized dividend and a dividend yield of 0.58%. Electronic Arts’s payout ratio is currently 19.14%.

Wall Street Analysts Forecast Growth

Several brokerages have commented on EA. BMO Capital Markets began coverage on shares of Electronic Arts in a research report on Tuesday, January 9th. They set an outperform rating and a $160.00 target price on the stock. Oppenheimer reaffirmed an outperform rating and set a $150.00 price target on shares of Electronic Arts in a research note on Tuesday, April 23rd. UBS Group cut their price target on Electronic Arts from $146.00 to $143.00 and set a neutral rating for the company in a research note on Wednesday, March 27th. Benchmark reaffirmed a buy rating and set a $153.00 price target on shares of Electronic Arts in a research note on Thursday, April 18th. Finally, Roth Mkm cut their price target on Electronic Arts from $140.00 to $135.00 and set a neutral rating for the company in a research note on Wednesday, May 1st. Eight investment analysts have rated the stock with a hold rating, ten have given a buy rating and one has issued a strong buy rating to the company. According to data from MarketBeat.com, the company currently has an average rating of Moderate Buy and an average price target of $146.72.

Insider Buying and Selling

In other news, CEO Andrew Wilson sold 2,500 shares of the business’s stock in a transaction on Monday, February 26th. The shares were sold at an average price of $142.39, for a total transaction of $355,975.00. Following the completion of the transaction, the chief executive officer now owns 28,430 shares of the company’s stock, valued at $4,048,147.70. The sale was disclosed in a filing with the SEC, which is accessible through this hyperlink. In related news, CEO Andrew Wilson sold 2,500 shares of the stock in a transaction that occurred on Monday, February 26th. The stock was sold at an average price of $142.39, for a total value of $355,975.00. Following the completion of the transaction, the chief executive officer now directly owns 28,430 shares of the company’s stock, valued at approximately $4,048,147.70. The sale was disclosed in a filing with the Securities & Exchange Commission, which is accessible through this link. Also, insider Jacob J. Schatz sold 1,000 shares of the firm’s stock in a transaction that occurred on Thursday, February 15th. The shares were sold at an average price of $143.24, for a total value of $143,240.00. Following the completion of the sale, the insider now owns 20,258 shares in the company, valued at $2,901,755.92. The disclosure for this sale can be found here. In the last 90 days, insiders have sold 37,144 shares of company stock valued at $5,087,143. Insiders own 0.20% of the company’s stock.

About Electronic Arts

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands.