Electronic Arts (EA) Reports Q3 Earnings: What Key Metrics Have to Say
Electronic Arts (EA) reported $2.34 billion in revenue for the quarter ended December 2022, representing a year-over-year decline of 9.1%. EPS of $2.71 for the same period compares to $3.17 a year ago.
The reported revenue compares to the Zacks Consensus Estimate of $2.5 billion, representing a surprise of -6.16%. The company delivered an EPS surprise of -11.15%, with the consensus EPS estimate being $3.05.
While investors closely watch year-over-year changes in headline numbers -- revenue and earnings -- and how they compare to Wall Street expectations to determine their next course of action, some key metrics always provide a better insight into a company's underlying performance.
As these metrics influence top- and bottom-line performance, comparing them to the year-ago numbers and what analysts estimated helps investors project a stock's price performance more accurately.
Here is how Electronic Arts performed in the just reported quarter in terms of the metrics most widely monitored and projected by Wall Street analysts:
Net Bookings: $2.34 billion versus the seven-analyst average estimate of $2.50 billion.
Net revenue composition - Full game: $622 million versus the four-analyst average estimate of $650.22 million.
Net revenue composition-Full game downloads-Non GAAP (NET BOOKINGS): $468 million versus $476.60 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -19.2% change.
Net revenue-Publishing Packaged Goods and other-Non GAAP (NET BOOKINGS): $219 million versus $235.09 million estimated by four analysts on average. Compared to the year-ago quarter, this number represents a -31.8% change.
Net revenue composition-Live services-Non-GAAP: $1.66 billion compared to the $1.61 billion average estimate based on three analysts. The reported number represents a change of -1.3% year over year.
View all Key Company Metrics for Electronic Arts here>>>
Shares of Electronic Arts have returned +5.6% over the past month versus the Zacks S&P 500 composite's +4.8% change. The stock currently has a Zacks Rank #3 (Hold), indicating that it could perform in line with the broader market in the near term.
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Electronic Arts Inc. (EA) : Free Stock Analysis Report
