Insights Into Electronic Arts (EA) Q1: Wall Street Projections for Key Metrics

The upcoming report from Electronic Arts (EA) is expected to reveal quarterly earnings of $0.10 per share, indicating a decline of 80.8% compared to the year-ago period. Analysts forecast revenues of $1.24 billion, representing a decline of 1.7% year over year.

Over the past 30 days, the consensus EPS estimate for the quarter has remained unchanged. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.

Prior to a company's earnings release, it is of utmost importance to factor in any revisions made to the earnings projections. These revisions serve as a critical gauge for predicting potential investor behaviors with respect to the stock. Empirical studies consistently reveal a strong link between trends in earnings estimate revisions and the short-term price performance of a stock.

While it's common for investors to rely on consensus earnings and revenue estimates for assessing how the business may have performed during the quarter, exploring analysts' forecasts for key metrics can yield valuable insights.

That said, let's delve into the average estimates of some Electronic Arts metrics that Wall Street analysts commonly model and monitor.

According to the collective judgment of analysts, 'Net revenue by composition- Live services and other- Non-GAAP (Net Bookings)' should come in at $1.03 billion. The estimate indicates a year-over-year change of -5.5%.

The collective assessment of analysts points to an estimated 'Net revenue by composition- Full game- Full game downloads- Non-GAAP (Net Bookings)' of $139.30 million. The estimate points to a change of -2.6% from the year-ago quarter.

The combined assessment of analysts suggests that 'Net revenue by composition- Full game- Packaged goods- Non-GAAP (Net Bookings)' will likely reach $24.02 million. The estimate indicates a year-over-year change of -3.9%.

Analysts predict that the 'Net Bookings' will reach $1.24 billion. Compared to the present estimate, the company reported $1.26 billion in the same quarter last year.

Electronic Arts shares have witnessed a change of -3.2% in the past month, in contrast to the Zacks S&P 500 composite's +4.6% move. With a Zacks Rank #2 (Buy), EA is expected outperform the overall market performance in the near term. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .

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This article originally published on Zacks Investment Research (zacks.com).

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