ORLANDO, FL - JUNE 1: The corporate logo for Lululemon is displayed at their store at Disney Springs ... [+] at Walt Disney World on June 1, 2024, in Orlando, Florida. (Photo by Gary Hershorn/Getty Images)Getty ImagesGiven its better prospects, we believe Lululemon stock (NASDAQ: LULU) is a better pick than the gaming company Electronics Arts stock (NYSE: EA). Although these companies are from different sectors, we compare them because of their similar characteristics, including a market capitalization of $ ...

Electronic Arts (EA) is expanding its gaming portfolio to boost the overall growth prospects of the company. This continuous expansion is a huge positive for the growth prospects of the company.Shares of the company have inched up 0.1% year to date against the Zacks Consumer Discretionary sector’s decline of 2.1%. This outperformance was due to the expanding portfolio of the company.Electronic Arts recently released the trailer of Dragon Age: The Veilguard. This game is set to release worldwide in Fall 2024 ...

A month has gone by since the last earnings report for Electronic Arts (EA) . Shares have added about 10.2% in that time frame, outperforming the S&P 500.Will the recent positive trend continue leading up to its next earnings release, or is Electronic Arts due for a pullback? Before we dive into how investors and analysts have reacted as of late, let's take a quick look at its most recent earnings report in order to get a better handle on the important drivers. Electronic Arts Q4 Earnings and Revenues Decli ...

Financial Performance - Total net revenue for the fiscal year ended March 31, 2024, was $7,562 million, representing a 2% year-over-year increase[135]. - Live services and other net revenue reached $5,547 million, up 1% year-over-year, with net revenue from extra content at $4,463 million, a 4% increase from the previous year[135]. - Net income was $1,273 million, with diluted earnings per share of $4.68[135]. - Net bookings for fiscal year 2024 were $7,430 million, a 1% increase compared to $7,341 million in fiscal year 2023[145]. - The increase in net revenue was primarily driven by a $2,105 million increase from EA SPORTS FC 24 and Star Wars Jedi: Survivor, offset by a $1,969 million decrease from legacy franchises[173]. - Revenue from live services and other includes sales of extra content, subscriptions, and advertising, contributing significantly to overall revenue growth[178]. Revenue Sources - Live services net revenue accounted for 73% of total net revenue in fiscal year 2024, highlighting the importance of extra content and subscription offerings[19]. - EA Play subscription service allows players access to a selection of games for a monthly or annual fee, contributing to recurring revenue[24]. - A significant portion of digital net revenue is derived from sales through major partners like Sony and Microsoft, exposing the company to risks associated with these partners' business health[84]. - The company recognizes revenue from subscriptions ratably over the subscription term as the performance obligation is satisfied[155]. - Revenue for service-related performance obligations for digitally-distributed games is recognized over an estimated eight-month period beginning in the month of sale[163]. Market and Competition - EA's business is subject to intense competition, with the risk of competitors developing more successful products that could shift consumer engagement away from EA's offerings[55]. - The company faces intense competition for licenses and rights to intellectual property, which could adversely affect its ability to develop successful products and services, potentially leading to significant declines in revenue and profitability[72]. - Increased competition for licenses may result in higher costs due to elevated minimum guarantees or royalty rates, which could further reduce profitability[74]. - The company is focused on expanding its global football experiences and engaging more fans through innovative platforms and business models[18]. Operational Challenges - The company has faced development delays in the past, which can lead to significant shortfalls in anticipated revenue and harm profitability[57]. - EA's ability to meet product development schedules is influenced by various factors, including player feedback and the complexity of products[57]. - The company may experience fluctuations in its recurring revenue, which could negatively impact financial and operating results[67]. - The company relies on various business partners, and any failure of these partners to meet their obligations could disrupt operations and harm the company's reputation[75]. Cybersecurity and Risks - The company faces ongoing cybersecurity risks that could materially impact its business and financial results[117]. - The company has experienced security breaches and cyber threats, which could lead to financial losses and damage to its brand and reputation[77]. - Catastrophic events, including natural disasters and cyber incidents, pose risks that could materially impact the company's financial condition and operating results[76]. Employee and Corporate Culture - The company aims to build a supportive culture that prioritizes employee engagement and development, with 78% participation in the latest Engagement Survey[43]. - Attracting and retaining skilled talent is critical, and failure to do so could impair the company's business and culture[83]. Financial Management - The company paid aggregate cash dividends of $205 million during the fiscal year ended March 31, 2024, with a quarterly cash dividend of $0.19 per share[124]. - The company repurchased approximately 10.0 million shares for approximately $1,300 million under the stock repurchase program during the fiscal year ended March 31, 2024[125]. - A new stock repurchase program was authorized in May 2024 to repurchase up to $5.0 billion of common stock, replacing the previous program[126]. - The company returned $1,505 million to stockholders in fiscal year 2024, including $1,300 million for share repurchases and $205 million in dividends[208]. Regulatory Environment - The company is subject to evolving global data privacy and consumer protection regulations, which could result in increased operational costs and potential penalties for non-compliance[89]. - New laws and regulations regarding virtual currencies and artificial intelligence could negatively impact the company's operations and financial results[94]. International Operations - For the fiscal year ended March 31, 2024, international net revenue comprised 60% of total net revenue[102]. - The strengthening of the U.S. dollar negatively affects reported international net revenue while positively impacting international operating expenses due to lower translation rates[214]. - The company employs foreign currency forward contracts to hedge against anticipated foreign currency exchange risks, although these hedges do not completely eliminate the impact of currency fluctuations[215].

Electronic Arts (EA) has revealed the eagerly awaited modes and features of EA SPORTS College Football 25. It showcased a dynamic on-field gameplay and the vibrant atmospheres of contemporary college football, set to launch worldwide on July 19.EA SPORTS College Football 25 introduces CampusIQ, a comprehensive set of features that brings the excitement of college football to life. The game includes 134 FBS schools and offers popular modes like Dynasty and Road To Glory, where players can build their own pro ...

Electronic Arts (EA) has revealed the historic covers of EA SPORTS College Football 25. The covers feature Michigan running back Donovan Edwards, Texas quarterback Quinn Ewers and Colorado wide receiver/defensive back Travis Hunter. The game will be available worldwide on Jul 19.Fans will be able to enjoy a wide variety of explosive gameplay across 134 FBS schools and immerse themselves in the iconic atmospheres of college football with the launch of the new video game.Pre-orders for the Standard and Deluxe ...

Key Points Electronic Arts demonstrates financial resilience with a return to profitability despite a decline in net bookings. EA SPORTS franchises, including the rebranded EA SPORTS FC and Madden NFL, continue to drive growth and player engagement. The company focuses on long-term growth through investments in new IP, mobile gaming, and AI-powered development tools. 5 stocks we like better than Electronic Arts Electronic Arts NASDAQ: EA is a titan in the interactive entertainment sector and commands a top ...

Electronic Arts (EA) reported fourth-quarter fiscal 2024 earnings of $1.37 per share, which declined 22.6% year over year. Revenues decreased 5.1% year over year to $1.77 billion due to weakness in Live services and other revenues.The Zacks Consensus Estimate for earnings was pegged at $1.55 per share. The consensus mark for revenues was pinned at $1.78 billion.Net bookings for the fiscal fourth quarter were $1.67 billion, down 14% year over year in both actual and constant currency.Full-game net bookings f ...

Financial Data and Key Metrics - Total net bookings for FY 2024 were $7.43 billion, up 1% YoY or 3% in constant currency [22] - Full game net bookings were $2.01 billion, up 11% YoY or 12% in constant currency, driven by Star Wars Jedi: Survivor and EA SPORTS portfolio [22] - Live services net bookings were $5.43 billion, down 2% YoY or 1% in constant currency, with strength in global football franchise offset by declines in Apex Legends [22] - GAAP net revenue was $7.56 billion, up 2% YoY, with a gross margin of 77.4%, an improvement of 150 basis points [23] - GAAP EPS was $4.68, growing 63% YoY, with operating cash flow of $2.32 billion, a record for the fiscal year [23] - Free cash flow reached $2.12 billion, up 58% YoY, including a one-time cash tax savings of approximately $150 million [24] Business Line Performance - EA SPORTS FC grew net bookings by high teens YoY, with billions of matches played and over a billion hours of content watched globally [10][11] - Madden NFL 24 achieved record net bookings and was the highest-selling installment since the early 2000s [13] - Apex Legends surpassed $3.4 billion in lifetime net bookings, with player sentiment improving by 29 points YoY [16][17] - The Sims 4 surpassed 85 million players, with double-digit YoY growth, and combined downloads of Sims Online and Sims Mobile exceeded 500 million [18] Market Performance - North America saw increased engagement for the top 10 franchises, with market share growth since FY 2022 [6] - EA SPORTS FC Mobile and Online declined YoY due to record comparables from the prior year's World Cup tailwinds, but FC Ultimate Team grew low-single digits [25] - Madden NFL saw increased weekly active users during and after the Super Bowl, with excitement continuing through the NFL draft [14] Strategic Direction and Industry Competition - The company is focused on three strategic pillars: entertaining massive online communities, telling blockbuster stories, and harnessing the power of community [7] - EA is leveraging partnerships with brands like Nike, Pepsi, Uber Eats, and Beats to deepen connections with players and unlock new sponsorship opportunities [12] - The company is investing in AI to improve development efficiency and expand game experiences, with over 50% of development processes expected to be positively impacted by generative AI [65][66] Management Commentary on Operating Environment and Future Outlook - Management highlighted the success of EA SPORTS FC and Madden NFL, with expectations for continued growth in core live services and new releases like EA SPORTS College Football 25 [14][27] - FY 2025 guidance includes net bookings of $7.3 billion to $7.7 billion, with mid-single-digit growth in core live services and low-single-digit growth in mobile [29] - The company expects GAAP operating margin to expand by 300 to 350 basis points by FY 2027, with non-GAAP operating margin expanding by 150 to 200 basis points [31] Other Important Information - The company announced a $5 billion stock repurchase program over the next three years, with $1.5 billion expected to be returned in FY 2025 [31] - EA plans to share more details about its development pipeline and strategic priorities at its Investor Day in September 2024 [32] Q&A Session Summary Question: Non-GAAP Operating Margin Guidance - The company introduced non-GAAP operating margin guidance to provide better transparency and align with its long-term financial framework [36][37] Question: Expectations for Major Franchises in FY 2025 - Management expects mid-single-digit growth in core live services, with continued growth in EA SPORTS FC and advancements in Apex Legends [42] Question: Stock Repurchase Program - The $5 billion stock repurchase program aligns with the company's long-term financial framework and signals confidence in future growth [44] Question: Mobile Segment Growth - The company expects low-to-mid-single-digit growth in the mobile market, with a focus on leveraging massive online communities and investing in breakout mobile titles [57][58] Question: AI in Game Development - AI is expected to significantly improve development efficiency, with over 50% of processes impacted, and expand game experiences over the next three to five years [65][66] Question: Advertising and IP Adaptation Opportunities - Advertising is seen as a potential growth driver, particularly in community-driven experiences beyond traditional gameplay, while IP adaptation into broader media is expected to benefit from the company's portfolio [73][72]

Electronic Arts (EA) reported $1.67 billion in revenue for the quarter ended March 2024, representing a year-over-year decline of 14.4%. EPS of $1.37 for the same period compares to $1.77 a year ago.The reported revenue represents a surprise of -6.41% over the Zacks Consensus Estimate of $1.78 billion. With the consensus EPS estimate being $1.54, the EPS surprise was -11.04%.While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Stree ...