Electronic Arts Inc. (NASDAQ: EA) recently reported a decline in its fourth-quarter earnings per share (EPS) and bookings, falling short of Wall Street analysts’ expectations. The company’s Q4 EPS was $1.37, missing the analyst estimate of $1.52 by $0.15. Bookings for the quarter were reported at $1.67 billion, lower than the anticipated consensus of $1.77 billion.
Looking ahead to fiscal year 2025, Electronic Arts projected revenue to be between $7.1 billion and $7.5 billion, below the consensus estimate of $7.76 billion from analysts. For the first quarter of 2025, EA anticipates an EPS range of $0.73 to $0.90, compared to a consensus estimate of $0.79, and revenue expectations ranging from $1.575 billion to $1.675 billion, surpassing the consensus estimate of $1.44 billion.
Following the news, EA’s stock experienced a 4% decline, reflecting investor concerns over the earnings miss and lower-than-expected bookings. Despite these challenges, the company highlighted its strong financial position in FY24, driven by record cash flow and robust earnings growth from flagship franchises like EA SPORTS FC™ and Madden NFL™.
CEO Andrew Wilson expressed confidence in building upon this momentum with an exciting pipeline that includes College Football in FY25. Stuart Canfield, CFO of EA, noted that their strategy has resulted in record net bookings for the Madden NFL franchise and double-digit growth in weekly average users for both Madden NFL 24 and Madden Mobile.
