Electronic Arts (Nasdaq: 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.
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.
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.
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.
The full year's average estimate for revenue is $4.29 billion. The average EPS estimate is $1.09.
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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