Core Viewpoint - The market anticipates a year-over-year decline in Electronic Arts' earnings due to lower revenues, with a focus on how actual results compare to estimates to influence stock price [1][2]. Earnings Expectations - Electronic Arts is expected to report quarterly earnings of $0.10 per share, reflecting a significant year-over-year decrease of 80.8%. Revenues are projected at $1.24 billion, down 1.7% from the previous year [3]. Estimate Revisions - The consensus EPS estimate has remained unchanged over the last 30 days, indicating that analysts have not significantly altered their outlook for the company during this period [4]. Earnings Surprise Prediction - The Most Accurate Estimate for Electronic Arts is higher than the Zacks Consensus Estimate, resulting in a positive Earnings ESP of +53.06%. The company holds a Zacks Rank of 2, suggesting a strong likelihood of beating the consensus EPS estimate [11]. Historical Performance - In the last reported quarter, Electronic Arts exceeded expectations by posting earnings of $1.54 per share against an anticipated $1.11, achieving a surprise of +38.74%. Over the last four quarters, the company has surpassed consensus EPS estimates three times [12][13]. Industry Comparison - Another player in the gaming industry, Brightstar, is expected to report earnings of $0.16 per share, indicating a year-over-year decline of 55.6%. Revenues are anticipated to be $627.6 million, down 40.2% from the previous year [17]. The consensus EPS estimate for Brightstar has been revised 18.6% higher recently, but it has an Earnings ESP of 0% and a Zacks Rank of 4, making it challenging to predict an earnings beat [18].
Electronic Arts (EA) Expected to Beat Earnings Estimates: What to Know Ahead of Q1 Release