Electronic Arts (EA) Q2 Earnings Preview: What You Should Know Beyond the Headline Estimates

In its upcoming report, Electronic Arts (EA) is predicted by Wall Street analysts to post quarterly earnings of $1.27 per share, reflecting a decline of 40.9% compared to the same period last year. Revenues are forecasted to be $1.86 billion, representing a year-over-year decrease of 10.4%.Over the past 30 days, the consensus EPS estimate for the quarter has been adjusted downward by 0.2% to its current level. This demonstrates the covering analysts' collective reassessment of their initial projections during this period.Prior to a company's earnings announcement, it is crucial to consider revisions to earnings estimates. This serves as a significant indicator for predicting potential investor actions regarding the stock. Empirical research has consistently demonstrated a robust correlation between trends in earnings estimate revision and the short-term price performance of a stock.While investors typically rely on consensus earnings and revenue estimates to gauge how the business may have fared during the quarter, examining analysts' projections for some of the company's key metrics often helps gain a deeper insight.That said, let's delve into the average estimates of some Electronic Arts metrics that Wall Street analysts commonly model and monitor.Analysts predict that the 'Net revenue by composition- Live services and other- Non-GAAP (Net Bookings)' will reach $1.14 billion. The estimate indicates a change of -8.7% from the prior-year quarter.The collective assessment of analysts points to an estimated 'Net revenue by composition- Full game- Full game downloads- Non-GAAP (Net Bookings)' of $479.41 million. The estimate indicates a year-over-year change of -12%.Analysts forecast 'Net revenue by composition- Full game- Packaged goods- Non-GAAP (Net Bookings)' to reach $255.83 million. The estimate points to a change of -10.9% from the year-ago quarter.The average prediction of analysts places 'Net Bookings' at $1.86 billion. The estimate is in contrast to the year-ago figure of $2.08 billion. View all Key Company Metrics for Electronic Arts here>>> Over the past month, shares of Electronic Arts have returned +20% versus the Zacks S&P 500 composite's +0.2% change. Currently, EA carries a Zacks Rank #3 (Hold), suggesting that its performance may align with the overall market in the near future. You can see the complete list of today's Zacks Rank #1 (Strong Buy) stocks here >>>> .Radical New Technology Could Hand Investors Huge GainsQuantum Computing is the next technological revolution, and it could be even more advanced than AI.While some believed the technology was years away, it is already present and moving fast. Large hyperscalers, such as Microsoft, Google, Amazon, Oracle, and even Meta and Tesla, are scrambling to integrate quantum computing into their infrastructure.Senior Stock Strategist Kevin Cook reveals 7 carefully selected stocks poised to dominate the quantum computing landscape in his report, Beyond AI: The Quantum Leap in Computing Power.Kevin was among the early experts who recognized NVIDIA's enormous potential back in 2016. Now, he has keyed in on what could be "the next big thing" in quantum computing supremacy. Today, you have a rare chance to position your portfolio at the forefront of this opportunity.See Top Quantum Stocks Now >>Want the latest recommendations from Zacks Investment Research? Today, you can download 7 Best Stocks for the Next 30 Days. Click to get this free report Electronic Arts Inc. (EA): Free Stock Analysis ReportThis article originally published on Zacks Investment Research (zacks.com).Zacks Investment ResearchWeiter zum vollständigen Artikel bei Zacks Weiter zum vollständigen Artikel bei Zacks