Buy or Sell EA Stock Ahead of Its Upcoming Earnings?

Group 1 - Electronic Arts (EA) is set to release its earnings on July 29, 2025, with analysts predicting earnings of $0.64 per share on sales of $1.23 billion, a decline from the previous year's earnings of $1.01 per share on sales of $1.26 billion [3][4] - Over the past twelve months, EA achieved $7.5 billion in revenue, with $1.6 billion in operating profits and a net income of $1.1 billion, resulting in a current market cap of approximately $39 billion [4] - Historical data shows that EA stock tends to have positive one-day returns following earnings announcements in 55% of cases, with a median one-day gain of 2.2% and the largest increase reaching 8.0% [2][6] Group 2 - There are 20 earnings data points over the last five years, with 11 positive and 9 negative one-day returns recorded, indicating a 55% occurrence of positive returns [6] - The percentage of positive one-day returns increases to 58% when analyzing data from the last three years [6] - The median of the 11 positive returns is 2.2%, while the median of the 9 negative returns is -5.5% [6] Group 3 - Traders can utilize historical trends for event-driven strategies, either by positioning ahead of earnings announcements or analyzing post-earnings returns to guide future positioning [3][5] - A relatively lower-risk strategy involves understanding the correlation between short-term and medium-term returns after earnings, allowing traders to position themselves accordingly [7][8]