EA's New Game Launch Boosts Stock: Is It Time to Buy?

Core Viewpoint - Electronic Arts (EA) has experienced a significant boost from the launch of its College Football franchise, but concerns remain regarding the performance of its non-sports games and overall growth trajectory [2][5]. Financial Performance - EA reported earnings per share (EPS) of 45 cents for the first quarter of its 2025 fiscal year, exceeding the consensus estimate of 41 cents [3]. - Revenue for the quarter was $1.26 billion, surpassing the forecast of $1.22 billion [3]. - The company provided guidance for upcoming quarter bookings between $1.95 billion and $2.05 billion, with the midpoint exceeding analysts' estimates [4]. Market Reaction - EA's stock has seen a 9.9% increase over the last month and a 10% rise in 2024, but early price action suggests that this momentum may already be priced into the stock [2]. - Following the earnings report, EA stock initially climbed 4.7% but has since retraced most of those gains [2]. Growth Prospects - The upcoming quarters are expected to benefit from the College Football title, the launch of Madden NFL 25, and FC 25, which have strong fan bases [4]. - Despite the positive outlook, there are concerns about the performance of non-sports titles like Apex Legends, which has reported lower bookings [5]. Analyst Sentiment - EA has a "Moderate Buy" rating among analysts, with a projected upside of 7.9% [6]. - Nine analysts have raised their price targets for EA stock since the earnings report, with the consensus price at $158.95, indicating a 6.9% upside [6]. - Institutional buying has decreased after strong buying in the first quarter, likely in anticipation of the College Football release [7].