Electronic Arts (NASDAQ:EA) Releases Earnings Results, Misses Expectations By $1.07 EPS

Electronic Arts (NASDAQ:EA) announced its earnings results on Tuesday. The game software company reported $2.34 earnings per share for the quarter, missing the consensus estimate of $3.41 by ($1.07), Zacks reports. Electronic Arts had a net margin of 14.12% and a return on equity of 18.56%.

Electronic Arts Trading Down 1.4 %

NASDAQ EA traded down $1.66 on Tuesday, reaching $121.25. The company had a trading volume of 7,033,510 shares, compared to its average volume of 4,247,377. The firm has a market cap of $31.80 billion, a price-to-earnings ratio of 31.17, a P/E/G ratio of 2.50 and a beta of 0.79. The business has a 50 day moving average of $146.84 and a two-hundred day moving average of $147.79. The company has a debt-to-equity ratio of 0.25, a current ratio of 1.43 and a quick ratio of 1.43. Electronic Arts has a fifty-two week low of $115.21 and a fifty-two week high of $168.50.

Insider Activity

In other Electronic Arts news, EVP Jacob J. Schatz sold 1,500 shares of the stock in a transaction dated Wednesday, January 15th. The shares were sold at an average price of $143.45, for a total value of $215,175.00. Following the completion of the sale, the executive vice president now owns 23,386 shares in the company, valued at approximately $3,354,721.70. This trade represents a 6.03 % decrease in their position. The transaction was disclosed in a filing with the SEC, which is accessible through the SEC website. Also, CEO Andrew Wilson sold 5,000 shares of the company’s stock in a transaction that occurred on Wednesday, November 20th. The shares were sold at an average price of $166.47, for a total value of $832,350.00. Following the completion of the transaction, the chief executive officer now directly owns 52,615 shares of the company’s stock, valued at approximately $8,758,819.05. This represents a 8.68 % decrease in their ownership of the stock. The disclosure for this sale can be found here. In the last three months, insiders have sold 25,000 shares of company stock valued at $3,835,555. 0.22% of the stock is currently owned by insiders.

Analyst Upgrades and Downgrades

EA has been the topic of several recent analyst reports. Raymond James downgraded Electronic Arts from an “outperform” rating to a “market perform” rating in a report on Thursday, January 23rd. Oppenheimer decreased their price objective on shares of Electronic Arts from $170.00 to $165.00 and set an “outperform” rating for the company in a research note on Tuesday, January 21st. StockNews.com upgraded shares of Electronic Arts from a “buy” rating to a “strong-buy” rating in a research report on Thursday, October 31st. Roth Mkm reduced their target price on Electronic Arts from $158.00 to $134.00 and set a “neutral” rating for the company in a report on Thursday, January 23rd. Finally, Bank of America lowered Electronic Arts from a “buy” rating to a “neutral” rating and decreased their price objective for the stock from $170.00 to $130.00 in a research report on Thursday, January 23rd. Twelve investment analysts have rated the stock with a hold rating, nine have issued a buy rating and one has assigned a strong buy rating to the stock. According to MarketBeat, the company has a consensus rating of “Moderate Buy” and a consensus target price of $156.38.

Electronic Arts Company Profile

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands.