Financial Performance - Q2 net bookings reached a record $2.079 billion, exceeding the high end of the guidance range of $2.050 billion[3] - Net revenue for Q2 was $2.025 billion, with net cash provided by operating activities at $234 million[4] - FY25 net revenue is expected to be approximately $7.400 billion to $7.700 billion, with net income projected between $1.019 billion and $1.156 billion[9] - Q3 FY25 net bookings are expected to be approximately $2.400 billion to $2.550 billion[11] - Net revenue for Q2 FY25 increased to $2,025 million, up 6% year-over-year (YoY) from $1,914 million in Q2 FY24[24] - Gross profit for Q2 FY25 rose to $1,569 million, an 8% YoY increase from $1,458 million in Q2 FY24[24] - Operating income for Q2 FY25 grew to $384 million, a 2% YoY increase from $377 million in Q2 FY24[24] - Net income for Q2 FY25 decreased to $294 million, down 26% YoY from $399 million in Q2 FY24[24] - Diluted earnings per share (EPS) for Q2 FY25 dropped to $1.11, a 24% YoY decline from $1.47 in Q2 FY24[24] - Q2 FY25 net revenue increased by 6% YoY to $2,025 million, driven by a 37% YoY growth in full game downloads to $475 million[26] - Live services and other revenue remained stable with a 1% YoY increase to $1,309 million, contributing 65% of total net revenue in Q2 FY25[26] - Console revenue grew 16% YoY to $1,374 million, while PC & Other and Mobile revenues declined by 14% and 6% YoY, respectively[26] - Non-GAAP operating income rose 12% YoY to $637 million, with a non-GAAP operating margin of 31.5%, up from 29.8% in Q2 FY24[30] - FY25 net revenue guidance is projected between $7,400 million and $7,700 million, with a non-GAAP operating margin range of 30.7% to 32.1%[31] - Q3 FY25 net revenue guidance is estimated between $1,875 million and $2,025 million, with a projected change in deferred net revenue of $525 million[33] Cash Flow and Share Repurchases - Net cash provided by operating activities for Q2 FY25 was $234 million, compared to $112 million in Q2 FY24[23] - Free cash flow for Q2 FY25 was $184 million, with a trailing twelve-month (TTM) free cash flow of $1,978 million, down 2% YoY[27][28] - EA repurchased 2.6 million shares for $375 million during the quarter, totaling 10.2 million shares for $1.400 billion over the trailing twelve months[4] - The company repurchased $375 million worth of common stock in Q2 FY25, a 15% increase from the previous quarter[27] Game Performance and Player Engagement - American Football is on track to exceed $1 billion in net bookings for FY25, with total hours played in Q2 up over 140% year over year[3] - The Sims™ 4 added more than 15 million players over the past year, driving higher-than-expected net bookings[3] - College Football 25 was the best-selling HD title in North America through September, contributing to EA having three of the top ten HD bestsellers in the region[3] - Global Football franchise net bookings in FY25 are on track to grow over the record FY24 performance[3] Balance Sheet and Capital Expenditures - Cash and cash equivalents decreased to $2,197 million as of September 30, 2024, down from $2,900 million on March 31, 2024[21] - Deferred net revenue (online-enabled games) decreased to $1,475 million as of September 30, 2024, from $1,814 million on March 31, 2024[22] - Total assets as of September 30, 2024, were $13,136 million, slightly down from $13,420 million on March 31, 2024[21] - Capital expenditures increased 15% YoY to $220 million on a TTM basis, reflecting ongoing investments in infrastructure and technology[27] Dividends and Stock-Based Compensation - EA declared a quarterly cash dividend of $0.19 per share, payable on December 18, 2024[5] - Stock-based compensation for Q2 FY25 increased to $174 million, up from $155 million in Q2 FY24[24] Non-GAAP Financial Measures - Non-GAAP financial measures exclude acquisition-related expenses, stock-based compensation, restructuring charges, and capital expenditures[34] - Non-GAAP measures are used by management to understand ongoing financial and business performance, excluding items not indicative of core business[34] - Investors are encouraged to review GAAP financial measures and reconciliations of non-GAAP measures to GAAP[35] - Non-GAAP financial measures do not reflect a comprehensive system of accounting and differ from GAAP measures[34] Tax Rate - The company maintains a tax rate of 19% for internal performance evaluation and future planning[31][33] - The company uses a tax rate of 19% internally for evaluating operating performance and forecasting future periods[35]

Core Viewpoint - Electronic Arts (EA) is expected to report its second-quarter fiscal 2025 results on October 29, with anticipated GAAP revenues between $1.9 billion and $2 billion, reflecting an 11.55% growth year-over-year [1]. Revenue and Earnings Expectations - The Zacks Consensus Estimate for fiscal second-quarter revenues is $2.03 billion, indicating an increase from the previous year [1]. - EA anticipates earnings in the range of 76 to 93 cents per share, with the consensus mark at $2.02 per share, suggesting a 38.26% increase from the year-ago figure [1]. - The earnings estimate has decreased by one cent over the past 30 days [1]. Factors Driving Growth - The launch of the Lovestruck pack within the Sims games and Season 22 of Apex Legends is expected to expand the customer base and drive revenue growth [1]. - The launch of EA SPORTS College Football 25 is anticipated to contribute to active user growth, supported by AI and ML enhancements [2]. - EA's Team Builder and UGX suite are expected to improve customer experience and revenue [2]. - The launch of Madden NFL 25, featuring enhanced audio and visual elements, is likely to boost the franchise's popularity [2]. - EA's Rush, a social 5v5 experience, is expected to enhance user retention across multiple platforms [2]. Competitive Landscape - EA faces stiff competition from Microsoft-owned Activision Blizzard, Take-Two Interactive, and Nintendo, which may hinder its growth prospects [4]. - The launch of competing titles such as Call of Duty: Warzone Mobile, NBA 2K25, and Nintendo's World Championships NES Edition is expected to negatively impact EA's active user growth in the upcoming quarter [4].

Analysts on Wall Street project that Electronic Arts (EA) will announce quarterly earnings of $2.02 per share in its forthcoming report, representing an increase of 38.4% year over year. Revenues are projected to reach $2.03 billion, increasing 11.6% from the same quarter last year.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted upward by 0.1% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this pe ...

Electronic Arts (NASDAQ: EA ) held its latest Investor Day on September 17. Key highlights from this event included an update that the company is on track toward the high end of its net bookings guidance for FY25. There wereOliver Rodzianko is an investment analyst specializing in the technology sector, with a focus on artificial intelligence, semiconductors, software, and renewable energy. He has earned a strong reputation on Seeking Alpha, where he is frequently featured in the platform’s "Must Reads." Hi ...

For new and old investors, taking full advantage of the stock market and investing with confidence are common goals. Zacks Premium provides lots of different ways to do both.The research service features daily updates of the Zacks Rank and Zacks Industry Rank, full access to the Zacks #1 Rank List, Equity Research reports, and Premium stock screens, all of which will help you become a smarter, more confident investor.It also includes access to the Zacks Style Scores.What are the Zacks Style Scores?Developed ...

It has been about a month since the last earnings report for Electronic Arts (EA) . Shares have lost about 1.1% in that time frame, underperforming the S&P 500.Will the recent negative trend continue leading up to its next earnings release, or is Electronic Arts due for a breakout? 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 Q1 Earnings and Revenu ...

Madden NFL 25 Championship Series Competitions to Take Place at Full Sail UniversityWINTER PARK, Fla., Aug. 27, 2024 /PRNewswire/ -- Today, the Madden NFL 25 Championship Series (MCS 25) announced a new home for upcoming competition at Full Sail University, an award-winning educational leader for those pursuing careers in entertainment media and emerging technologies. As part of the collaboration, all MCS 25 regular season events will take place at the university in Winter Park, Florida, just down the road ...

Taking full advantage of the stock market and investing with confidence are common goals for new and old investors, and Zacks Premium offers many different ways to do both.The popular research service can help you become a smarter, more self-assured investor, giving you access to daily updates of the Zacks Rank and Zacks Industry Rank, the Zacks #1 Rank List, Equity Research reports, and Premium stock screens.Zacks Premium includes access to the Zacks Style Scores as well.What are the Zacks Style Scores?The ...

Core Insights - Electronic Arts (EA) and BioWare are set to launch the game Dragon Age: The Veilguard on October 31, 2024, with pre-orders available for Standard and Deluxe Editions [1] - EA anticipates net bookings for fiscal 2025 to be between $7.3 billion and $7.7 billion, with revenues projected between $7.1 billion and $7.5 billion [3] - The company is facing significant competition in the gaming market from major players like NetEase, Take-Two Interactive, and Roblox [4] Game Launch Details - Dragon Age: The Veilguard features a customizable protagonist named Rook and a diverse cast of seven companions [1] - Pre-order bonuses include exclusive in-game cosmetics, with the Deluxe Edition offering additional items [1] - The BioWare Gear Store has launched new merchandise related to the game, including a collector's item priced at $150 [2] Financial Projections - The Zacks Consensus Estimate for EA's fiscal 2025 net bookings is $7.5 billion, reflecting a 1% increase from the previous year [3] - Revenue estimates for fiscal 2025 are pegged at $7.61 billion, indicating a 2.43% increase year-over-year [3] - The consensus estimate for EA's second-quarter fiscal 2025 earnings is $2 per share, which has increased by 14 cents in the past month [3] Upcoming Titles - EA's upcoming games include EA SPORTS FC 25 and Madden NFL 25, set to release on September 27 and August 16, respectively [4] - The company is focusing on creating immersive games with advanced technology [4] Competitive Landscape - EA's shares have increased by 7.5% year-to-date, contrasting with a decline in the Zacks Consumer Discretionary sector [4] - Competitors like NetEase, Take-Two Interactive, and Roblox have seen declines of 3.3%, 9.1%, and 11.4% respectively in the same timeframe [4] Growth Concerns - Despite expanding its gaming portfolio, EA faces challenges due to soft demand for live services and intense competition [5] - The company's reliance on a few well-known franchises raises concerns about its growth prospects [5]

Core Insights - Electronic Arts (EA) is a leader in the gaming industry but has struggled to demonstrate growth over the years [1] - While acquisitions have positively impacted operations, the gaming sector continues to face significant pressure [1] - The current stock price is considered too high for potential investors given the lack of growth [1] Company Performance - EA remains profitable despite the challenges in growth [1] - The company has relied on acquisitions to bolster its operations [1] Industry Context - The gaming industry is experiencing ongoing pressures that affect growth potential [1] - The overall market conditions suggest a cautious outlook for EA's future performance [1]