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Electronic Arts jumps 5% on FQ2 beat and raised guidance; Analysts flag need for pipeline execution

Published 11/01/2023, 05:32 PM
Updated 11/02/2023, 09:35 AM
© Reuters.  Electronic Arts stock jumps 5% on Q2 beat & raised guidance
EA
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(Updated - November 2, 2023 9:33 AM EDT)

Electronic Arts (NASDAQ:EA) surged more than 4% on Thursday after the company reported FQ2 results, with EPS of $1.46 coming in better than the consensus estimate of $1.25.

Revenue was $1.91 billion, beating the consensus estimate of $1.77B. Net bookings grew 4% year-over-year (up 5% in constant currency) to $1.82B.

“We delivered a strong Q2 and successfully launched EA SPORTS FC, transforming one of the largest franchises in the world into a powerful, interactive platform for the future of football fandom,” said CEO Andrew Wilson.

The company expects Q3/24 EPS to be in the range of $2.70-$3.00, compared to the consensus of $2.79, and net revenue of $1.825-$2.025B, compared to the consensus of $2.33B.

For the full year, EPS is seen at $6.60-$7.20, compared to the consensus of $6.83, and net revenue at $7.300-$7.700B, compared to the consensus of $7.57B.

Analysts at Goldman Sachs said EA delivered "a solid set of results."

"Longer term, we still frame EA as a company with growth mostly driven by their core portfolio, mobile strategy, international expansion, M&A opportunities and organic projects, and long-term EBITDA margin expansion to be realized in the out years," they wrote.

Additional reporting by Senad Karaahmetovic

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