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

Company Overview - Electronic Arts (EA) is scheduled to report its third-quarter fiscal 2025 results on February 4, 2025 [1] Financial Expectations - EA expects GAAP revenues of $1.88 billion for the third quarter of fiscal 2025, while the Zacks Consensus Estimate is$2.25 billion, indicating a decline of 4.79% from the previous year [2] - The anticipated earnings per share (EPS) is $1.11, with the consensus mark for fiscal third-quarter earnings at$2.99 per share, suggesting a 1.01% increase from the year-ago figure [2][3] - The earnings estimate has decreased by 12.3% over the past 30 days [3] Performance Drivers - Strong performance in sports franchises, particularly with the launch of Madden NFL 25 and College Football 25, has contributed to commercial success and cultural impact in sports entertainment [4] - The introduction of the EA SPORTS APP reflects EA's commitment to leveraging data and technology to enhance community engagement and attract new sports fans [5] - EA's focus on immersive content, storytelling, and community engagement is expected to support sustained growth [6] - The Team Builder and UGX suite enhancements are anticipated to improve customer experience and revenue growth [7] Competitive Landscape - The video game publishing industry is highly competitive, with EA facing significant competition from companies like Take-Two Interactive and Microsoft, which may impact profit margins and market share [8] Earnings Outlook - According to the Zacks model, EA currently has an Earnings ESP of -4.02% and a Zacks Rank of 3, indicating a lower likelihood of an earnings beat [9]