Electronic Arts Q4 Earnings and Revenues Increase Year Over Year

Electronic Arts EA reported fourth-quarter fiscal 2025 earnings of $1.54 per share, which grew 12.4% year over year. Revenues rose 6.5% year over year to $1.89 billion due to an increase in Live services and full-game revenues.The Zacks Consensus Estimate for earnings was pegged at $1.11 per share. The consensus mark for revenues was pinned at $1.57 billion.See the Zacks Earnings Calendar to stay ahead of market-making news.Net bookings for the fiscal fourth quarter were $1.8 billion, up 8% year over year.Full-game net bookings were $384 million, up 48% year over year. Live services net bookings were $1.42 billion, up 1% year over year.Electronic Arts Inc. Price, Consensus and EPS Surprise Electronic Arts Inc. price-consensus-eps-surprise-chart | Electronic Arts Inc. QuoteQuarter Details of EAEA’s full-game revenues (23.1% of total revenues) increased 31.2% year over year to $437 million. Full-game download revenues increased 38% year over year to $367 million. Revenues from packaged goods grew 3% year over year to $70 million.Live services and other revenues (76.9% of total revenues) increased 0.8% year over year to $1.46 billion.Based on platforms, revenues from consoles increased 13% year over year to $1.18 billion in the reported quarter. Revenues from PC & Other increased 1% year over year to $426 million. Revenues from the mobile platform decreased 7% year over year to $287 million.Operating Details of EAEA’s GAAP gross profit increased 7.4% from the year-ago quarter’s levels to $1.53 billion. Gross margin expanded 60 basis points (bps) on a year-over-year basis to 80.6%.Operating expenses decreased 4.7% year over year to $1.13 billion. As a percentage of revenues, operating expenses contracted from 66.8% in the year-ago quarter to 59.7%.Operating income on a GAAP basis increased 68.8% year over year to $395 million. The operating margin expanded from 13.2% in the year-ago quarter to 20.8% in the reported quarter.Electronic Arts’ Balance Sheet and Cash FlowAs of March 31, 2025, EA had $2.25 billion in cash and short-term investments compared with $3.16 billion as of Dec. 31, 2024.Net cash provided by operating activities was $549 million for the quarter and $2.079 billion for the trailing 12 months.EA repurchased 9.8 million shares for $1.375 billion during the quarter under the stock repurchase program, bringing the total for the trailing 12 months to 17.6 million shares for $2.5 billion.The company has declared a quarterly cash dividend of 19 cents per share of the company’s common stock. The dividend is payable on June 18, 2025, to stockholders of record as of the close of business on May 28, 2025.Electronic Arts Provides Guidance for Q1 & FY26For first-quarter fiscal 2026, EA expects GAAP revenues between $1.55 billion and $1.65 billion and earnings per share in the range of 49 cents to 66 cents. Net bookings are expected between $1.175 billion and $1.275 billion.For fiscal 2026, EA expects revenues in the range of $7.1-$7.5 billion and earnings in the band of $3.09-$3.79 per share.The company expects net bookings for fiscal 2026 between $7.6 billion and $8 billion.Operating cash flow is estimated in the band of $2.2-$2.4 billion.Zacks Rank & Stocks to ConsiderEA currently carries a Zacks Rank #3 (Hold).Atlanta Braves Holdings, Inc. BATRA, Birkenstock Holding PLC BIRK and Fox FOXA are some better-ranked stocks that investors can consider in the Zacks Consumer Discretionary sector. BATRA and BIRK sport a Zacks Rank #1 (Strong Buy) each at present, while FOXA has a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.Shares of BATRA have gained 7.2% year to date. It is set to report first-quarter 2025 results on May 12.Shares of BIRK have lost 8.6% year to date. It is slated to report second-quarter fiscal 2025 results on May 15.Shares of Fox have gained 2% year to date. FOXA is set to report third-quarter fiscal 2025 results on May 12.5 Stocks Set to DoubleEach was handpicked by a Zacks expert as the #1 favorite stock to gain +100% or more in 2024. While not all picks can be winners, previous recommendations have soared +143.0%, +175.9%, +498.3% and +673.0%.Most of the stocks in this report are flying under Wall Street radar, which provides a great opportunity to get in on the ground floor.Today, See These 5 Potential Home Runs >>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 Report Fox Corporation (FOXA): Free Stock Analysis Report Atlanta Braves Holdings, Inc. (BATRA): Free Stock Analysis Report Birkenstock Holding PLC (BIRK): 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