Core Insights - Electronic Arts (EA) exceeded fiscal fourth-quarter bookings estimates, leading to a 7% increase in shares [1] - The company anticipates fiscal 2026 bookings between $7.60 billion and $8 billion, surpassing StreetAccount's estimate of $7.62 billion [1] - Net bookings for fiscal 2025 reached $7.355 billion [1] Financial Performance - First-quarter bookings guidance is projected between $1.175 billion and $1.275 billion, falling short of analyst expectations of $1.275 billion [2] - Earnings per share reported at 98 cents, not comparable to analyst estimates [3] - Revenue (bookings) for the quarter was $1.80 billion, exceeding the expected $1.56 billion [3] Contributions to Growth - CEO Andrew Wilson highlighted that the company's FC and College Football games significantly contributed to a strong year of bookings [2]

Financial Performance - Net bookings for FY25 totaled $7.355 billion, with EA SPORTS portfolio achieving record net bookings[6] - EA's American Football franchise exceeded $1 billion in net bookings for FY25[6] - Net revenue for FY25 was $7.463 billion, a slight decrease from $7.562 billion in FY24[9] - Net income for FY25 was $1.121 billion, down from $1.273 billion in FY24[9] - Diluted earnings per share for FY25 were $4.25, compared to $4.68 in FY24[9] - Net revenue for the twelve months ended March 31, 2025, was $7,463 million, a decrease of 1% compared to $7,562 million in 2024[34] - For Q1 FY25, net revenue increased by 7% to $1,895 million compared to $1,779 million in Q1 FY24[37] Future Projections - For Q1 FY26, net bookings are expected to be approximately $1.175 billion to $1.275 billion[7] - Fiscal year 2026 net bookings are projected to be between $7.600 billion and $8.000 billion[7] - The company expects FY26 net revenue guidance to range from $7,100 million to $7,500 million[40] - Operating margin guidance for FY26 is projected to be between 16.3% and 18.9%[40] Cash Flow and Shareholder Returns - Operating cash flow for FY25 was $2.079 billion, down from $2.315 billion in FY24[9] - EA repurchased 9.8 million shares for $1.375 billion during Q4 FY25, totaling 17.6 million shares for $2.500 billion in FY25[6] - EA declared a quarterly cash dividend of $0.19 per share, payable on June 18, 2025[5] - Free cash flow for Q4 FY25 was $495 million, a decrease of 6% year-over-year[31] Quarterly Performance - Net revenue for the three months ended March 31, 2025, was $1,895 million, a 7% increase compared to $1,779 million in the same period of 2024[22] - Gross profit for the same period was $1,527 million, representing 81% of net revenue, up from 76% in the previous year[28] - Operating income increased to $395 million, which is 21% of net revenue, compared to 13% in Q4 FY24[28] - Net income for the three months ended March 31, 2025, was $254 million, a 40% increase from $182 million in the same period of 2024[28] - Diluted earnings per share rose to $0.98, a 46% increase from $0.67 in the prior year[28] Balance Sheet Highlights - Total current assets decreased to $3,276 million from $4,247 million year-over-year[24] - Total liabilities increased slightly to $5,982 million from $5,907 million in the previous year[24] - Cash and cash equivalents at the end of the period were $2,136 million, down from $2,900 million a year earlier[24] - The company reported a deferred net revenue of $1,700 million for online-enabled games, down from $1,814 million in the previous year[24] Operating Metrics - GAAP operating income for the same period was $1,520 million, slightly up from $1,518 million in 2024[34] - Non-GAAP operating income decreased by 2% to $2,331 million from $2,384 million year-over-year[34] - GAAP operating margin improved to 20.8% in Q1 FY25 from 13.2% in Q1 FY24[37] - Total stock-based compensation for Q4 FY25 was $162 million, up from $148 million in Q4 FY24[34] Taxation - The tax rate used for management reporting remained consistent at 19% for both years[28]

Group 1 - Major League Soccer (MLS) is partnering with Electronic Arts (EA) to stream four MLS matches this season on EA Sports FC Mobile [1][3] - The first match will be available for free streaming on May 10, featuring a rematch between the Los Angeles Galaxy and New York Red Bulls, following the Galaxy's victory in the 2024 final [2] - All matches will be simulcast with Apple TV's MLS Season Pass, which holds exclusive media rights, and EA FC Mobile players will receive a free one-month trial of the Season Pass along with in-game currency [3] Group 2 - This partnership marks EA's first venture into live streaming sports, capitalizing on the growing audience for live sports across media platforms [4] - The collaboration comes after a challenging quarter for EA, attributed to the underperformance of its games, particularly the EA Sports FC franchise [4] - EA is set to report its next quarterly earnings on Tuesday, which may provide further insights into the impact of this partnership on its financial performance [4]

Core Viewpoint - Electronic Arts (EA) is expected to report its fourth-quarter fiscal 2025 results on May 6, with anticipated GAAP revenues between $1.682 billion and $1.832 billion and earnings per share ranging from 65 cents to $1 [1][2]. Revenue and Earnings Estimates - The Zacks Consensus Estimate for fiscal fourth-quarter revenues is $1.56 billion, reflecting a decline of 6.18% from the previous year [2]. - The consensus for fiscal fourth-quarter earnings is $1.11 per share, indicating an 18.98% decrease from the year-ago figure, with a 4.3% downward revision in estimates over the past 30 days [3]. Performance Factors - EA's Global Football franchise is projected to experience a low double-digit decline in net bookings for the fourth quarter, following a mid-single-digit decline in Q3, due to challenges in player acquisition and engagement [5]. - The release of the new co-op action-adventure game, Split Fiction, on March 6, is expected to partially offset declines in other franchises, priced at $49.99 [6]. - The announcement of F1 25 is likely to have a modest impact on bookings due to its release in the next fiscal year, while the acquisition of TRACAB Technologies is not expected to materially affect Q4 results [7]. Year-over-Year Comparisons - EA anticipates fourth-quarter net bookings between $1.444 billion and $1.594 billion, representing a decline of 4-13% year-over-year [9]. - The American Football titles are performing well, with expectations to surpass $1 billion in net bookings for fiscal 2025, although the upcoming College Football 26 release is outside this reporting period [8]. Future Outlook - Investors should monitor engagement metrics across EA's sports franchises and insights regarding the fiscal 2026 pipeline, which includes major releases like College Football 26 and Battlefield, as these could signal a potential return to growth [10].

The upcoming report from Electronic Arts (EA) is expected to reveal quarterly earnings of $1.11 per share, indicating a decline of 19% compared to the year-ago period. Analysts forecast revenues of $1.56 billion, representing a decrease of 6.2% year over year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 148% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company ...

Group 1 - EA has laid off approximately 300 employees, including around 100 from Respawn, the studio behind popular titles like APEX Legends and Star Wars Jedi [1][3] - Respawn has decided to abandon two early incubation projects and make adjustments to the APEX Legends and Star Wars Jedi teams, with speculation about the canceled projects [3] - The layoffs represent about one-third of Respawn's total workforce, affecting development, publishing, and QA teams for APEX Legends and Star Wars Jedi [3][4] Group 2 - EA's Q3 FY2025 financial report showed net revenue of $1.883 billion, down from $1.945 billion in the same period last year, with executives expressing dissatisfaction with APEX Legends and planning a major update [4] - EA has faced ongoing project cancellations, restructuring, and layoffs since 2023, including significant layoffs at BioWare due to the failure of Dragon Age 4 and a focus shift to Mass Effect 5 [4] - Industry reactions to the layoffs have been critical, highlighting concerns about EA's management of its studios and the impact on game development quality [6]

Core Viewpoint - The market anticipates a year-over-year decline in Electronic Arts' earnings due to lower revenues, with the actual results being crucial for stock price movement [1][2]. Earnings Expectations - Electronic Arts is expected to report quarterly earnings of $1.09 per share, reflecting a year-over-year decrease of 20.4% [3]. - Revenues are projected to be $1.56 billion, down 6.4% from the same quarter last year [3]. Estimate Revisions - The consensus EPS estimate has been revised 140% higher in the last 30 days, indicating a reassessment by analysts [4]. - The Most Accurate Estimate for Electronic Arts is lower than the Zacks Consensus Estimate, resulting in an Earnings ESP of -7.70% [10][11]. Earnings Surprise Prediction - The Zacks Earnings ESP model suggests that a positive or negative reading indicates the likely deviation of actual earnings from the consensus estimate, with positive readings being more predictive of earnings beats [6][7]. - A positive Earnings ESP combined with a strong Zacks Rank increases the likelihood of an earnings surprise, but Electronic Arts currently has a Zacks Rank of 3, making predictions uncertain [8][11]. Historical Performance - In the last reported quarter, Electronic Arts was expected to post earnings of $2.99 per share but delivered $2.83, resulting in a surprise of -5.35% [12]. - Over the past four quarters, the company has beaten consensus EPS estimates twice [13]. Industry Comparison - In the gaming industry, Roblox is expected to report a loss of $0.41 per share, with a year-over-year change of +4.7%, and revenues of $1.15 billion, up 24% from the previous year [17]. - Roblox's consensus EPS estimate has been revised up by 0.4% in the last 30 days, and it has an Earnings ESP of 5.21%, suggesting a likely earnings beat [18].

Parkev Tatevosian, CFA has no position in any of the stocks mentioned. The Motley Fool recommends Electronic Arts. The Motley Fool has a disclosure policy. Parkev Tatevosian is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool. ...

Group 1 - Electronic Arts (NASDAQ: EA) has 40 years of experience in the gaming industry and remains relevant in a constantly evolving market [1] - The company is based in California and is known for managing some of the most recognizable and commercially successful gaming franchises [1] Group 2 - The article emphasizes the importance of well-researched commentary and insights into various industries and asset classes, including high-growth technology equities and undervalued blue-chip stocks [1]

Core Insights - Lowe's is integrating its brand into EA SPORTS titles, enhancing engagement with sports fans and connecting with a younger audience interested in home improvement [4][5]. Group 1: Brand Integration and Engagement - Lowe's will feature prominently in EA SPORTS College Football 26, with branding on the broadcast overlay of Stadium Pulse, which enhances crowd excitement during gameplay [1]. - The collaboration includes interactive experiences, such as a real-life "On the Road" gaming event that will travel across the country during the NFL season, allowing fans to engage with the Lowe's brand [2]. - This integration is part of a broader strategy to connect with digitally savvy audiences and establish loyalty among the next generation of home improvers [4]. Group 2: Company Overview - Lowe's Companies, Inc. is a FORTUNE® 50 home improvement company, serving approximately 16 million customer transactions weekly in the U.S. [6]. - The company reported total sales exceeding $83 billion for fiscal year 2024 and operates over 1,700 stores with around 300,000 employees [6].