Electronic Arts to Report Q2 Earnings: What's in Store for EA Stock?

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].