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Electronic Arts Earnings: An Early Look

Dan Caplinger
January 29, 2013

With hundreds of companies having already reported quarterly results, we're now in the heart of earnings season. The key to making smart investment decisions with stocks releasing their quarter reports is to anticipate how they'll do before they announce results, leaving you fully prepared to respond quickly to whatever inevitable surprises arise. That way, you'll be less likely to make an uninformed knee-jerk reaction to news that turns out to be exactly the wrong move.

Let's turn to Electronic Arts (NASDAQ: EA). The video game company has faced a huge change in the industry, as low-ticket mobile-device and computer games have pulled a great deal of demand away from high-priced console game offerings. Let's take an early look at what's been happening with Electronic Arts over the past quarter and what we're likely to see in its quarterly report on Wednesday.

Stats on Electronic Arts

Analyst EPS Estimate


Change from Year-Ago EPS


Revenue Estimate

$1.29 billion

Change From Year-Ago Revenue


Earnings Beats in Past 4 Quarters


Sources: Yahoo! Finance, S&P Capital IQ.

Will Electronic Arts up its game?
Over the past three months, analysts have gotten a lot more pessimistic about Electronic Arts, pulling their earnings-per-share estimates down by $0.15. But the stock has done quite well, rising 22% since late October.

The big problem that Electronic Arts has faced in recent years is the rise of low-priced social gaming. Even though Zynga's (NASDAQ: ZNGA) stock hasn't been a good investment, the company's business