Key TakeawaysThe S&P 500 gained 0.5% on Thursday, Jan. 23, reaching a record close as President Donald Trump pressed for lower oil prices and interest rates.Moderna shares extended this week's gains following a high-profile endorsement of AI's potential in developing cancer vaccines.Shares of Electronic Arts plunged after the video game maker lowered its bookings guidance, citing soft sales from its soccer franchise. Major U.S. equities indexes moved higher as investors absorbed the latest round of corporat ...

Earnings Performance - EA preannounced fiscal Q3 2025 earnings, with shares dropping 17.5% to $117.50 per share [1] - Expected earnings per share were $1.15, but the actual figure is $1.11, missing Wall Street estimates [1] - Q3 net revenue is projected to be $1.88 billion, below the Wall Street estimate of $2.33 billion [3][4] Revenue Guidance - EA initially guided for mid-single-digit growth in live services net bookings for fiscal 2025 [2] - The guidance has been revised to a mid-single-digit decline, reflecting weaker performance [2] Factors Impacting Performance - A slowdown in bookings for the Global Football franchise contributed to the revenue decline [3] - The number of players for Dragon Age games fell short by nearly 50% in Q3 [3] Valuation and Market Reaction - EA stock is trading at 30 times trailing earnings, which may be too expensive given the slumping sales [5] - Despite missing revenue estimates, EA's earnings of $1.11 per share slightly beat Yahoo! Finance's prediction of $1.06 [4]

A sign is posted in front of Electronic Arts (EA) headquarters on March 30, 2023 in Redwood City, California. Video game maker Electronic Arts announced plans to cut 6 percent of its nearly 13,000 person workforce.Shares of Electronic Arts headed for their steepest drop since 1999 after the video game publisher cut its full-year bookings guidance, due mostly to challenges with its soccer franchise. The stock plummeted 19% to $115.86 as of mid-day on Thursday. That would be its worst day on the market since ...

Electronic Arts (EA) is the worst S&P 500 stock Thursday after the video game maker released preliminary results for its fiscal 2025 third quarter and downwardly revised its full-year bookings forecast. At last check, EA stock was down more than 18%.For its fiscal third quarter, EA said it now expects revenue of approximately $1.883 billion and earnings of roughly $1.11 per share. It had previously guided for revenue in the range of $1.875 billion to $2.025 billion and earnings between 85 cents and $1.02 pe ...

Electronic Arts Inc. (NASDAQ:EA) stock is near the bottom of the Nasdaq today, last seen down 17.3% to trade at $117.62. The video game company cut its third-quarter and 2025 bookings forecast, citing a slowdown in the popular FIFA franchise. In response, three brokerages issued downgrades, while four more brokerages issued price-target cuts, the worst coming from Stifel to $133 from $159. There could be more adjustments on the way, considering EA's 12-month consensus price target of $154.01 is a 31.4% prem ...

About this content About Josh Lamb After graduating from the University of Kent in the summer of 2022 with a degree in History, Josh joined Proactive later that year as a journalist in the UK editorial team. Josh has reported on a range of areas whilst at Proactive, including energy companies during a time of global crisis, aviation and airlines as the sector recovers from the pandemic, as well as covering economic, social and governance issues. Read more About the publisher Proactive financial news and ...

Key TakeawaysElectronic Arts shares are tumbling 15% in premarket trading Thursday, a day after slumping demand for its EA SPORTS FC 25 video game prompted the company to cut its outlook.The company projected net bookings to be $2.22 billion for the fiscal third quarter, down from $2.4 billion to $2.55 billion previously.EA also cut its fiscal 2025 net bookings forecast to a range of $7 billion to $7.15 billion, down from $7.5 billion to $7.8 billion. Electronic Arts (EA) shares are tumbling in premarket tr ...

Visitors play the 'EA Sports FC 25' game in front of a placard with England's midfielder Jude Bellingham at the Electronic Arts booth during the media day at the Gamescom video games trade fair in Cologne, western Germany on Aug. 21, 2024.Electronic Arts slashed its full-year bookings guidance on Wednesday, blaming the shortfall on underperforming games, notably its soccer franchise, EA Sports FC. The shares dropped 7% in extended trading.For the fiscal third quarter, which ended Dec. 31, EA said it expects ...

Company Performance and Challenges - EA's subpar performance is attributed to fierce competition in the gaming industry, challenges in player engagement and retention, and weak monetization in freemium models [1][2] - EA faces lower-than-expected monetization in freemium models, particularly in Apex Legends Season 22 [2] - EA's shares have lost 8.5% in the past month, underperforming the Zacks Consumer Discretionary sector's decline of 0.4% and the Zacks Gaming industry's loss of 3.1% [8] - EA's stock has underperformed peers like Roblox (RBLX), Nintendo (NTDOY), and TakeTwo Interactive Software (TTWO) in the same time frame [8] Financial Estimates and Trends - For Q3 fiscal 2025, EA expects net revenues of $1.875-$2.025 billion and diluted earnings of 85 cents to $1.02 per share [3] - For full-year fiscal 2025, EA expects net revenues of $7.4-$7.7 billion and diluted earnings of $3.82-$4.33 per share [3] - The Zacks Consensus Estimate for Q3 fiscal 2025 revenues is $2.51 billion, indicating year-over-year growth of 6.02% [10] - The Zacks Consensus Estimate for Q3 fiscal 2025 earnings is $3.41 per share, indicating year-over-year growth of 15.2% [10] - The Zacks Consensus Estimate for full-year fiscal 2025 revenues is $7.69 billion, indicating year-over-year growth of 3.51% [11] - The Zacks Consensus Estimate for full-year fiscal 2025 earnings is $7.82 per share, indicating year-over-year growth of 12.52% [11] - EA's earnings beat the Zacks Consensus Estimate in three of the trailing four quarters, with an average surprise of 4.29% [11] Gaming Portfolio and Innovations - EA benefits from an expanding portfolio with immersive offerings in sports, adventure, and life simulation games [6] - EA leverages GenAI and advanced technologies like ICE Q for enhanced gameplay and creative experiences [6] - In Q2 fiscal 2025, total hours played increased by 140% year over year [6] - EA's latest releases include Dragon Age: The Veil Guard, The Sims 4 Creator Kit, and My Sims Cozy bundle [9] - EA and Hazelight Studios announced Split Fiction, a co-op action-adventure game blending sci-fi and fantasy, set to release on March 6 [9] Industry and Competitive Landscape - EA faces fierce competition in the gaming industry, especially in the free-to-play (FPS) segment [2] - Challenges persist in maintaining consistent player engagement and retention across some franchises [2]

It has been about a month since the last earnings report for Electronic Arts (EA) . Shares have added about 9.4% 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 the most recent earnings report in order to get a better handle on the important catalysts. Electronic Arts Q2 Earnings and Revenue ...