Electronic Arts (NASDAQ:EA) Announces Earnings Results

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

Electronic Arts Stock Performance

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. Electronic Arts has a 1 year low of $159.10 and a 1 year high of $210.20. The company’s fifty day simple moving average is $205.21 and its 200 day simple moving average is $203.01. The stock has a market cap of $52.92 billion, a PE ratio of 60.09, a price-to-earnings-growth ratio of 2.35 and a beta of 0.64. The company has a quick ratio of 1.05, a current ratio of 1.05 and a debt-to-equity ratio of 0.22.

Insider Activity

In other news, CEO Andrew Wilson sold 5,066 shares of the business’s stock in a transaction that occurred on Thursday, May 21st. The shares were sold at an average price of $201.66, for a total value of $1,021,609.56. Following the sale, the chief executive officer owned 85,974 shares of the company’s stock, valued at $17,337,516.84. The trade was a 5.56% decrease in their ownership of the stock. The transaction was disclosed in a document filed with the SEC, which is available at the SEC website. The transaction was executed under a pre-arranged Rule 10b5-1 trading plan. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Also, EVP Jacob J. Schatz sold 5,000 shares of the company’s stock in a transaction that occurred on Wednesday, May 20th. The shares were sold at an average price of $201.19, for a total transaction of $1,005,950.00. Following the sale, the executive vice president owned 42,287 shares in the company, valued at $8,507,721.53. The trade was a 10.57% decrease in their ownership of the stock. The SEC filing for this sale provides additional information. The sale was made to cover tax withholding obligations related to the vesting of equity awards. Over the last three months, insiders have sold 31,206 shares of company stock valued at $6,292,058. 0.24% of the stock is currently owned by corporate insiders.

Institutional Trading of Electronic Arts

Institutional investors and hedge funds have recently bought and sold shares of the company. Geneos Wealth Management Inc. boosted its stake in Electronic Arts by 150.8% during the first quarter. Geneos Wealth Management Inc. now owns 316 shares of the game software company’s stock valued at $46,000 after buying an additional 190 shares during the period. DV Equities LLC bought a new position in Electronic Arts in the 4th quarter worth about $64,000. MUFG Securities EMEA plc purchased a new stake in shares of Electronic Arts in the 2nd quarter valued at about $108,000. Parkside Financial Bank & Trust raised its holdings in shares of 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 acquiring an additional 69 shares in the last quarter. Finally, Alpha Family Trust bought a new stake in shares of Electronic Arts during the 4th quarter valued at about $200,000. 90.23% of the stock is currently owned by hedge funds and other institutional investors.

Analyst Ratings Changes

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

About Electronic Arts

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.