$0.14 EPS Expected for Electronic Arts Inc. (EA) This Quarter
Equities research analysts expect Electronic Arts Inc. (NASDAQ:EA) to report $0.14 earnings per share (EPS) for the current quarter, Zacks Investment Research reports. Six analysts have made estimates for Electronic Arts’ earnings, with estimates ranging from $0.12 to $0.17. Electronic Arts posted earnings of ($0.08) per share in the same quarter last year, which would suggest a positive year over year growth rate of 275%. The firm is expected to announce its next earnings report after the market closes on Thursday, July 27th.
According to Zacks, analysts expect that Electronic Arts will report full year earnings of $3.62 per share for the current fiscal year, with EPS estimates ranging from $3.50 to $3.73. For the next financial year, analysts anticipate that the firm will report earnings of $4.26 per share, with EPS estimates ranging from $4.03 to $4.49. Zacks’ earnings per share averages are an average based on a survey of sell-side research firms that cover Electronic Arts.
Electronic Arts (NASDAQ:EA) last issued its earnings results on Tuesday, May 9th. The game software company reported $0.58 EPS for the quarter, missing analysts’ consensus estimates of $0.61 by $0.03. The firm had revenue of $1.53 billion for the quarter, compared to analyst estimates of $1.09 billion. Electronic Arts had a return on equity of 27.60% and a net margin of 19.96%. The business’s revenue for the quarter was up 16.7% on a year-over-year basis. During the same quarter in the previous year, the firm posted $0.50 EPS.
Several equities research analysts recently issued reports on EA shares. Piper Jaffray Companies reaffirmed a “buy” rating and set a $99.00 price target on shares of Electronic Arts in a research note on Monday, May 1st. Vetr raised shares of Electronic Arts from a “strong sell” rating to a “buy” rating and set a $94.20 price target on the stock in a research note on Wednesday, April 12th. Jefferies Group LLC reaffirmed a “buy” rating and set a $110.00 price target on shares of Electronic Arts in a research note on Monday, April 10th. MKM Partners reissued a “buy” rating and issued a $109.00 target price (up previously from $95.00) on shares of Electronic Arts in a research report on Friday, May 5th. Finally, Mizuho set a $115.00 target price on shares of Electronic Arts and gave the stock a “buy” rating in a research report on Wednesday, May 10th. One analyst has rated the stock with a sell rating, six have issued a hold rating, eighteen have issued a buy rating and one has issued a strong buy rating to the company. Electronic Arts has a consensus rating of “Buy” and an average price target of $108.06.
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Electronic Arts (NASDAQ EA) opened at 110.28 on Wednesday. The firm has a market cap of $34.19 billion, a P/E ratio of 35.81 and a beta of 0.70. Electronic Arts has a 52 week low of $73.74 and a 52 week high of $116.04. The company’s 50 day moving average is $110.52 and its 200-day moving average is $95.28.
Electronic Arts announced that its board has initiated a stock buyback program on Tuesday, May 9th that permits the company to buyback $1.20 billion in shares. This buyback authorization permits the game software company to repurchase up to 45% of its shares through open market purchases. Shares buyback programs are often an indication that the company’s management believes its shares are undervalued.
In related news, CEO Andrew Wilson sold 108,000 shares of the company’s stock in a transaction on Monday, May 1st. The shares were sold at an average price of $94.99, for a total transaction of $10,258,920.00. Following the completion of the transaction, the chief executive officer now directly owns 100,000 shares in the company, valued at approximately $9,499,000. The transaction was disclosed in a filing with the SEC, which is available through the SEC website. Also, CFO Blake J. Jorgensen sold 10,000 shares of the company’s stock in a transaction on Thursday, May 18th. The shares were sold at an average price of $104.56, for a total transaction of $1,045,600.00. Following the transaction, the chief financial officer now owns 239,614 shares of the company’s stock, valued at $25,054,039.84. The disclosure for this sale can be found here. Over the last ninety days, insiders have sold 444,857 shares of company stock valued at $46,912,661. 2.55% of the stock is owned by insiders.
A number of institutional investors have recently added to or reduced their stakes in EA. Thrivent Financial for Lutherans boosted its position in Electronic Arts by 5.6% in the fourth quarter. Thrivent Financial for Lutherans now owns 10,440 shares of the game software company’s stock valued at $822,000 after buying an additional 550 shares during the last quarter. Ibex Wealth Advisors bought a new position in Electronic Arts during the fourth quarter valued at approximately $1,550,000. UBS Asset Management Americas Inc. boosted its position in Electronic Arts by 19.0% in the fourth quarter. UBS Asset Management Americas Inc. now owns 1,621,203 shares of the game software company’s stock valued at $127,686,000 after buying an additional 258,773 shares during the last quarter. USA Financial Portformulas Corp bought a new position in Electronic Arts during the fourth quarter valued at approximately $626,000. Finally, Pegasus Partners Ltd. boosted its position in Electronic Arts by 2.3% in the fourth quarter. Pegasus Partners Ltd. now owns 11,255 shares of the game software company’s stock valued at $886,000 after buying an additional 250 shares during the last quarter. Hedge funds and other institutional investors own 98.21% of the company’s stock.
About Electronic Arts
Electronic Arts Inc develops, markets, publishes and distributes games, content and services that can be played by consumers on a range of platforms, which include consoles, personal computers (PCs), mobile phones and tablets. The Company’s games and services are based on a portfolio of intellectual property that includes established brands, such as FIFA, Madden NFL, Star Wars, Battlefield, the Sims and Need for Speed.
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