Electronic Arts (NASDAQ:EA) Releases FY 2023 Earnings Guidance

Electronic Arts (NASDAQ:EAGet Rating) issued an update on its FY 2023 earnings guidance on Tuesday morning. The company provided earnings per share (EPS) guidance of $7.05-$7.15 for the period, compared to the consensus estimate of $7.43. The company issued revenue guidance of $7.90 billion-$8.10 billion, compared to the consensus revenue estimate of $8.02 billion.Electronic Arts also updated its Q1 2023 guidance to $0.16-$0.27 EPS.

Shares of EA stock opened at $133.77 on Tuesday. The stock has a market cap of $37.62 billion, a PE ratio of 48.47, a price-to-earnings-growth ratio of 2.10 and a beta of 0.83. The business has a 50-day simple moving average of $124.34 and a 200-day simple moving average of $128.65. The company has a quick ratio of 1.20, a current ratio of 1.18 and a debt-to-equity ratio of 0.25. Electronic Arts has a 52-week low of $109.24 and a 52-week high of $148.93.

Electronic Arts (NASDAQ:EAGet Rating) last issued its quarterly earnings data on Tuesday, May 10th. The game software company reported $0.80 earnings per share (EPS) for the quarter, missing the consensus estimate of $1.43 by ($0.63). The company had revenue of $1.75 billion during the quarter, compared to analyst estimates of $1.77 billion. Electronic Arts had a net margin of 11.29% and a return on equity of 18.99%. The business’s quarterly revenue was up 17.5% compared to the same quarter last year. During the same period last year, the firm earned $0.72 EPS. Sell-side analysts anticipate that Electronic Arts will post 5.53 earnings per share for the current fiscal year.

The business also recently disclosed a quarterly dividend, which will be paid on Wednesday, June 22nd. Stockholders of record on Wednesday, June 8th will be issued a $0.19 dividend. This represents a $0.76 annualized dividend and a dividend yield of 0.57%. The ex-dividend date is Tuesday, June 7th. This is a boost from Electronic Arts’s previous quarterly dividend of $0.17. Electronic Arts’s payout ratio is 24.64%.

EA has been the subject of several analyst reports. Moffett Nathanson raised Electronic Arts from a neutral rating to a buy rating and decreased their price objective for the company from $151.00 to $141.00 in a report on Wednesday, May 11th. TheStreet raised Electronic Arts from a c+ rating to a b rating in a report on Friday. Barclays reduced their price target on Electronic Arts from $152.00 to $127.00 and set an equal weight rating for the company in a report on Wednesday, February 2nd. Cowen reduced their price target on Electronic Arts from $180.00 to $158.00 in a report on Wednesday, May 11th. Finally, The Goldman Sachs Group cut Electronic Arts from a buy rating to a neutral rating and reduced their price target for the stock from $183.00 to $145.00 in a report on Tuesday, April 19th. Five equities research analysts have rated the stock with a hold rating and seventeen have issued a buy rating to the stock. According to MarketBeat, the company currently has an average rating of Buy and an average target price of $155.54.

In related news, insider Chris Bruzzo sold 2,000 shares of the firm’s stock in a transaction dated Wednesday, May 18th. The stock was sold at an average price of $128.39, for a total transaction of $256,780.00. Following the transaction, the insider now owns 27,524 shares of the company’s stock, valued at $3,533,806.36. The transaction was disclosed in a filing with the SEC, which is accessible through this link. Also, CEO Andrew Wilson sold 10,000 shares of the firm’s stock in a transaction dated Monday, February 28th. The stock was sold at an average price of $130.16, for a total value of $1,301,600.00. The disclosure for this sale can be found here. In the last ninety days, insiders have sold 45,700 shares of company stock worth $5,770,889. Corporate insiders own 0.65% of the company’s stock.

Hedge funds and other institutional investors have recently added to or reduced their stakes in the stock. Penserra Capital Management LLC lifted its position in Electronic Arts by 19.3% in the fourth quarter. Penserra Capital Management LLC now owns 1,460 shares of the game software company’s stock valued at $191,000 after purchasing an additional 236 shares during the period. 1832 Asset Management L.P. lifted its position in Electronic Arts by 783.5% in the fourth quarter. 1832 Asset Management L.P. now owns 20,700 shares of the game software company’s stock valued at $2,812,000 after purchasing an additional 18,357 shares during the period. Peapack Gladstone Financial Corp lifted its position in Electronic Arts by 2.5% in the fourth quarter. Peapack Gladstone Financial Corp now owns 3,538 shares of the game software company’s stock valued at $467,000 after purchasing an additional 87 shares during the period. Tobam lifted its position in Electronic Arts by 58.2% in the fourth quarter. Tobam now owns 1,587 shares of the game software company’s stock valued at $209,000 after purchasing an additional 584 shares during the period. Finally, Thrivent Financial for Lutherans lifted its position in shares of Electronic Arts by 5.4% during the 4th quarter. Thrivent Financial for Lutherans now owns 243,358 shares of the game software company’s stock valued at $32,141,000 after acquiring an additional 12,463 shares during the period. 89.28% of the stock is currently owned by hedge funds and other institutional investors.

Electronic Arts Company Profile (Get Rating)

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and Plants vs.

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