Will These Numbers from Electronic Arts Be Good Enough for You?
Electronic Arts (NAS: EA) is expected to report Q4 earnings on May 7. 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 grow 5.8% and EPS will grow 241.2%.
The average estimate for revenue is $1.03 billion. On the bottom line, the average EPS estimate is $0.58.
Revenue details
Last quarter, Electronic Arts booked revenue of $1.18 billion. GAAP reported sales were 13% lower than the prior-year quarter's $1.06 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 $0.57. GAAP EPS were -$0.15 for Q3 against -$0.62 per share for the prior-year quarter.
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 53.5%, 550 basis points better than the prior-year quarter. Operating margin was -8.9%, 940 basis points better than the prior-year quarter. Net margin was -4.9%, much better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $3.79 billion. The average EPS estimate is $0.88.
Investor sentiment
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,938 members out of 2,226 rating the stock outperform, and 288 members rating it underperform. Among 547 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 473 give Electronic Arts a green thumbs-up, and 74 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 $16.10.
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The article Will These Numbers from Electronic Arts Be Good Enough for You? 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 position in any of the stocks mentioned. 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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