Electronic Arts, in the Spotlight Soon

Seth Jayson, The Motley Fool
Updated

Electronic Arts (NAS: EA) is expected to report Q1 earnings on July 31. Here's what Wall Street wants to see:

The 10-second takeaway
 Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Electronic Arts's revenues will drop -4.5% and EPS will remain in the red.

The average estimate for revenue is $500.5 million. On the bottom line, the average EPS estimate is -$0.42.


Revenue details
 Last quarter, Electronic Arts chalked up revenue of $977.0 million. GAAP reported sales were 26% higher than the prior-year quarter's $1.09 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 Last quarter, non-GAAP EPS came in at $0.17. GAAP EPS of $1.21 for Q4 were 169% higher than the prior-year quarter's $0.45 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
 For the preceding quarter, gross margin was 73.5%, 360 basis points better than the prior-year quarter. Operating margin was 27.7%, 1,260 basis points better than the prior-year quarter. Net margin was 29.2%, 1,530 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $4.29 billion. The average EPS estimate is $1.09.

Investor sentiment
 The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,981 members out of 2,254 rating the stock outperform, and 273 members rating it underperform. Among 527 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 450 give Electronic Arts a green thumbs-up, and 77 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Electronic Arts is outperform, with an average price target of $23.55.

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The article Electronic Arts, in the Spotlight Soon originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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