Electronic Arts (EA) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

Core Viewpoint - Electronic Arts (EA) is expected to report a significant decline in quarterly earnings and revenues, indicating potential challenges in its financial performance [1]. Financial Performance Estimates - Analysts predict EA will post quarterly earnings of $1.27 per share, a decline of 40.9% year-over-year [1]. - Revenues are forecasted to be $1.86 billion, reflecting a year-over-year decrease of 10.4% [1]. - The consensus EPS estimate has been adjusted downward by 0.2% over the past 30 days, indicating a reassessment of projections by analysts [2]. Revenue Composition Insights - Estimated 'Net revenue by composition- Live services and other- Non-GAAP (Net Bookings)' is projected to reach $1.14 billion, down 8.7% from the prior-year quarter [5]. - 'Net revenue by composition- Full game- Full game downloads- Non-GAAP (Net Bookings)' is estimated at $479.41 million, indicating a year-over-year change of -12% [5]. - 'Net revenue by composition- Full game- Packaged goods- Non-GAAP (Net Bookings)' is forecasted to be $255.83 million, reflecting a change of -10.9% from the year-ago quarter [6]. - Overall, 'Net Bookings' is estimated at $1.86 billion, contrasting with the previous year's figure of $2.08 billion [6]. Market Performance - Over the past month, EA shares have returned +20%, significantly outperforming the Zacks S&P 500 composite's +0.2% change [6]. - EA currently holds a Zacks Rank 3 (Hold), suggesting its performance may align with the overall market in the near future [6].