Analysts Estimate Electronic Arts (EA) to Report a Decline in Earnings: What to Look Out for

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].