Electronic Arts (Nasdaq: EA ) is expected to report Q2 earnings on Oct. 30. 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 4.4% and EPS will grow 100.0%.
The average estimate for revenue is $1.08 billion. On the bottom line, the average EPS estimate is $0.10.
Last quarter, Electronic Arts logged revenue of $491.0 million. GAAP reported sales were 4.4% lower than the prior-year quarter's $999.0 million.
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 -$0.41. GAAP EPS of $0.63 for Q1 were 4.5% lower than the prior-year quarter's $0.66 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 78.5%, 250 basis points better than the prior-year quarter. Operating margin was 23.2%, 150 basis points worse than the prior-year quarter. Net margin was 21.0%, 110 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $4.15 billion. The average EPS estimate is $1.04.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,957 members out of 2,227 rating the stock outperform, and 270 members rating it underperform. Among 524 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 454 give Electronic Arts a green thumbs-up, and 70 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 $19.51.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Electronic Arts makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.