Electronic Arts(EA) ZACKS·2025-01-28 16:06Core Viewpoint - Wall Street anticipates a year-over-year increase in earnings for Electronic Arts (EA) despite lower revenues, with a focus on how actual results will compare to estimates [1][3]. Earnings Expectations - EA is expected to report quarterly earnings of 2.25 billion, down 4.8% from the previous year [3]. - The consensus EPS estimate has been revised down by 30.8% over the last 30 days, indicating a bearish sentiment among analysts [4][10]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that the Most Accurate Estimate for EA is lower than the consensus estimate, resulting in an Earnings ESP of -5.85%, complicating predictions for an earnings beat [10][11]. - A positive Earnings ESP is generally a strong indicator of an earnings beat, especially when combined with a Zacks Rank of 1, 2, or 3, which increases the likelihood of a positive surprise [8]. Historical Performance - In the last reported quarter, EA exceeded the expected earnings of 2.15, resulting in a surprise of +5.91% [12]. - Over the past four quarters, EA has beaten consensus EPS estimates three times [13]. Market Reaction Considerations - An earnings beat or miss alone may not dictate stock movement, as other factors can influence investor sentiment [14]. - Despite the current outlook, EA does not appear to be a compelling candidate for an earnings beat, suggesting that investors should consider additional factors before making investment decisions [16].