Electronic Arts (NASDAQ:EA) Announces Quarterly Earnings Results, Beats Expectations By $0.76 EPS

Electronic Arts (NASDAQ:EA) released its quarterly earnings data on Monday. The game software company reported $1.58 earnings per share for the quarter, topping the consensus estimate of $0.82 by $0.76, FiscalAI reports. Electronic Arts had a net margin of 11.78% and a return on equity of 23.41%. The firm had revenue of $1.99 billion for the quarter, compared to analyst estimates of $1.48 billion.

Electronic Arts Stock Performance

Shares of NASDAQ:EA traded down $0.21 during trading hours on Tuesday, hitting $209.70. The stock had a trading volume of 47,485,848 shares, compared to its average volume of 2,605,462. The stock’s fifty day simple moving average is $205.21 and its 200 day simple moving average is $203.01. The firm has a market capitalization of $52.92 billion, a price-to-earnings ratio of 60.09, a PEG ratio of 2.35 and a beta of 0.64. The company has a debt-to-equity ratio of 0.22, a quick ratio of 1.05 and a current ratio of 1.05. Electronic Arts has a 1-year low of $159.10 and a 1-year high of $210.20.

Analyst Upgrades and Downgrades

Several equities analysts have recently commented on the company. Argus lowered Electronic Arts from a “buy” rating to a “hold” rating in a report on Thursday, May 28th. Zacks Research lowered Electronic Arts from a “hold” rating to a “strong sell” rating in a research report on Monday, July 13th. Citigroup upped their price objective on Electronic Arts from $202.00 to $204.00 and gave the stock a “neutral” rating in a research note on Thursday, May 7th. Weiss Ratings raised Electronic Arts from a “hold (c)” rating to a “hold (c+)” rating in a research report on Monday, May 18th. Finally, Wall Street Zen upgraded Electronic Arts to a “hold” rating in a research note on Saturday, June 6th. Two investment analysts have rated the stock with a Buy rating, fourteen have given a Hold rating and two have given a Sell rating to the stock. According to data from MarketBeat.com, Electronic Arts currently has a consensus rating of “Hold” and an average target price of $201.42.

Insider Buying and Selling at Electronic Arts

In related news, EVP Jacob J. Schatz sold 5,000 shares of the stock in a transaction that occurred on Wednesday, May 20th. The stock was sold at an average price of $201.19, for a total value of $1,005,950.00. Following the completion of the transaction, the executive vice president directly owned 42,287 shares of the company’s stock, valued at $8,507,721.53. This represents a 10.57% decrease in their position. The sale was disclosed in a filing with the SEC, which is available through the SEC website. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, insider Laura Miele sold 2,500 shares of the firm’s stock in a transaction that occurred on Monday, June 15th. The shares were sold at an average price of $203.10, for a total value of $507,750.00. Following the completion of the sale, the insider owned 73,513 shares in the company, valued at approximately $14,930,490.30. This represents a 3.29% decrease in their ownership of the stock. Additional details regarding this sale are available in the official SEC disclosure. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. In the last 90 days, insiders sold 31,206 shares of company stock valued at $6,292,058. 0.24% of the stock is currently owned by insiders.

Institutional Inflows and Outflows

A number of large investors have recently modified their holdings of the business. Parkside Financial Bank & Trust increased its stake in Electronic Arts by 8.0% in the 4th quarter. Parkside Financial Bank & Trust now owns 931 shares of the game software company’s stock valued at $190,000 after buying an additional 69 shares during the last quarter. Townsquare Capital LLC boosted its stake in shares of Electronic Arts by 5.8% in the 4th quarter. Townsquare Capital LLC now owns 1,292 shares of the game software company’s stock worth $264,000 after buying an additional 71 shares during the last quarter. Quadrant Capital Group LLC boosted its stake in shares of Electronic Arts by 1.7% in the 4th quarter. Quadrant Capital Group LLC now owns 4,337 shares of the game software company’s stock worth $886,000 after buying an additional 71 shares during the last quarter. Vise Technologies Inc. grew its holdings in shares of Electronic Arts by 1.7% in the third quarter. Vise Technologies Inc. now owns 4,472 shares of the game software company’s stock valued at $902,000 after acquiring an additional 74 shares in the last quarter. Finally, Centaurus Financial Inc. grew its holdings in shares of Electronic Arts by 4.4% in the third quarter. Centaurus Financial Inc. now owns 1,769 shares of the game software company’s stock valued at $357,000 after acquiring an additional 74 shares in the last quarter. 90.23% of the stock is owned by institutional investors and hedge funds.

Electronic Arts Company Profile

Electronic Arts Inc (NASDAQ: EA) is a global interactive entertainment company headquartered in Redwood City, California. Founded in 1982 by Trip Hawkins, EA develops, publishes and distributes video games and related content for a variety of platforms, including consoles, personal computers and mobile devices. The company combines in-house development, partnerships and studio acquisitions to create and maintain a portfolio of entertainment properties and live-service experiences for players worldwide.

EA’s product lineup spans several well-known franchises and genres.