Yahoo Finance What To Expect From Electronic Arts's (EA) Q2 Earnings
Video game publisher Electronic Arts (NASDAQ:EA) will be announcing earnings results tomorrow after market close. Here's what to expect.
Electronic Arts met analysts' revenue expectations last quarter, reporting revenues of $1.78 billion, down 5.1% year on year. It was a weak quarter for the company, with full-year revenue guidance missing analysts' expectations and slow revenue growth.
Is Electronic Arts a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Electronic Arts's revenue to decline 18% year on year to $1.58 billion, a reversal from the 8.9% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.43 per share.
Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings.
Looking at Electronic Arts's peers in the consumer internet segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Netflix delivered year-on-year revenue growth of 16.8%, meeting analysts' expectations, and Coursera reported revenues up 10.8%, topping estimates by 3.5%. Netflix traded down 1.5% following the results while Coursera was up 45.1%.
Read our full analysis of Netflix's results here and Coursera's results here.
There has been positive sentiment among investors in the consumer internet segment, with share prices up 2.8% on average over the last month. Electronic Arts is up 5.9% during the same time and is heading into earnings with an average analyst price target of $152.9 (compared to the current share price of $145.49).
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