Electronic Arts (Nasdaq: EA ) is expected to report Q3 earnings on Jan. 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 drop -21.7% and EPS will decrease -43.4%.
The average estimate for revenue is $1.29 billion. On the bottom line, the average EPS estimate is $0.56.
Last quarter, Electronic Arts logged revenue of $1.08 billion. GAAP reported sales were 0.6% lower than the prior-year quarter's $715.0 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 $0.15. GAAP EPS were -$1.21 for Q2 against -$1.03 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the preceding quarter, gross margin was 37.4%, 220 basis points worse than the prior-year quarter. Operating margin was -51.5%, 140 basis points worse than the prior-year quarter. Net margin was -53.6%, 600 basis points worse than the prior-year quarter.
The full year's average estimate for revenue is $4.08 billion. The average EPS estimate is $1.03.
The stock has a two-star rating (out of five) at Motley Fool CAPS, with 1,955 members out of 2,230 rating the stock outperform, and 275 members rating it underperform. Among 558 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 486 give Electronic Arts a green thumbs-up, and 72 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Electronic Arts is hold, with an average price target of $16.82.
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