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Electronic Arts (EA) closed the most recent trading day at $131.06, moving +0.83% from the previous trading session. This change outpaced the S&P 500's 0.54% loss on the day. Meanwhile, the Dow lost 0.02%, and the Nasdaq, a tech-heavy index, lost 0.12%.
Coming into today, shares of the video game maker had lost 2.37% in the past month. In that same time, the Consumer Discretionary sector lost 13.15%, while the S&P 500 lost 7.87%.
Electronic Arts will be looking to display strength as it nears its next earnings release, which is expected to be February 1, 2022. On that day, Electronic Arts is projected to report earnings of $3.23 per share, which would represent year-over-year growth of 4.53%. Our most recent consensus estimate is calling for quarterly revenue of $2.66 billion, up 10.93% from the year-ago period.
For the full year, our Zacks Consensus Estimates are projecting earnings of $7.04 per share and revenue of $7.58 billion, which would represent changes of +22.22% and +22.45%, respectively, from the prior year.
Any recent changes to analyst estimates for Electronic Arts should also be noted by investors. These revisions help to show the ever-changing nature of near-term business trends. With this in mind, we can consider positive estimate revisions a sign of optimism about the company's business outlook.
Research indicates that these estimate revisions are directly correlated with near-term share price momentum. We developed the Zacks Rank to capitalize on this phenomenon. Our system takes these estimate changes into account and delivers a clear, actionable rating model.
The Zacks Rank system, which ranges from #1 (Strong Buy) to #5 (Strong Sell), has an impressive outside-audited track record of outperformance, with #1 stocks generating an average annual return of +25% since 1988. The Zacks Consensus EPS estimate has moved 0.05% lower within the past month. Electronic Arts is currently a Zacks Rank #3 (Hold).
Digging into valuation, Electronic Arts currently has a Forward P/E ratio of 18.47. This valuation marks a premium compared to its industry's average Forward P/E of 16.99.
The Toys - Games - Hobbies industry is part of the Consumer Discretionary sector. This group has a Zacks Industry Rank of 206, putting it in the bottom 20% of all 250+ industries.
The Zacks Industry Rank gauges the strength of our industry groups by measuring the average Zacks Rank of the individual stocks within the groups. Our research shows that the top 50% rated industries outperform the bottom half by a factor of 2 to 1.
To follow EA in the coming trading sessions, be sure to utilize Zacks.com.
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Electronic Arts Inc. (EA) : Free Stock Analysis Report
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