Will Electronic Arts (EA) Beat Estimates Again in Its Next Earnings Report?

Core Insights - Electronic Arts (EA) has a strong track record of beating earnings estimates, with an average surprise of 8.17% over the last two quarters [1] - The company reported earnings of $2.96 per share for the last quarter, exceeding the Zacks Consensus Estimate of $2.92 per share by 1.37% [1] - In the previous quarter, EA's earnings were $1.46 per share against an expectation of $1.27, resulting in a surprise of 14.96% [1] Earnings Estimates - Recent estimates for Electronic Arts have been increasing, indicating a positive outlook for future earnings [2] - The Zacks Earnings ESP for EA is currently positive, suggesting a high likelihood of an earnings beat [2] - Stocks with a positive Earnings ESP and a Zacks Rank of 3 (Hold) or better have a nearly 70% chance of producing a positive surprise [2] Earnings ESP Analysis - The Earnings ESP compares the Most Accurate Estimate to the Zacks Consensus Estimate, reflecting the latest analyst revisions [3] - Electronic Arts has an Earnings ESP of +0.17%, indicating growing analyst optimism about its near-term earnings potential [3] - The company's Zacks Rank is 2 (Buy), further supporting the possibility of another earnings beat [3] Importance of Earnings ESP - A negative Earnings ESP can reduce predictive power but does not necessarily indicate an earnings miss [4] - Many companies can still beat consensus EPS estimates, and some may maintain their stock value even with a miss [4] - Utilizing the Earnings ESP Filter is recommended to identify the best stocks to buy or sell before earnings reports [4]