Shares of Electronic Arts Inc. fell after hours on Wednesday after the videogame developer cut its outlook for the months ahead, following stumbles in its big soccer gaming franchise as well as in some of its role-playing games during a quarter typically lifted by holiday demand.
Video gaming company Electronic Arts cut its forecast for fiscal year 2025 bookings on Wednesday, citing weakness across some sports titles.
Electronic Arts slashed its full-year guidance for bookings on Wednesday, blaming the shortfall on underperforming games, in particular its soccer franchise. Global Football, as EA calls it, started to see a slowdown during the December quarter after two years of double-digit growth in net bookings.
Goldman Sachs expects a 25% increase in mergers and acquisitions in the United States this year. The investment firm expects the incoming government of Donald Trump to be significantly more business-friendly.
EA is benefiting from an expanding gaming portfolio amid intense market competition, challenges in player engagement and weak monetization.
EA Sports College Football 25 posts banner sales, according to industry-tracking firm Circana, in an otherwise fairly mundane month.
Stifel analyst Drew Crum downgraded Electronic Arts to Hold from Buy with an unchanged $167 price target. The firm remains positive on the stock longer term given its fundamental outlook for the company, but it is reducing its net booking estimates following its "review of game model", the analyst tells investors in a research note. Stifel adds that it sees "limited upside" for shares in the near term.
Electronic Arts (EA) reported earnings 30 days ago. What's next for the stock?
EA shares are benefiting from demand for live services and full game revenues. However, sluggish packaged goods revenues and intense competition are headwinds.
Earnings reports from Walmart and Lowe's will give investors a glimpse at consumer spending on Tuesday morning, while SpaceX readies for another launch.
Electronic Arts (NYSE: EA) has risen over 25% from levels of $130 in early 2022 to $160 now, aligning with the performance of the S&P 500 index over this period. The company has seen a solid sales growth over the recent years, despite tepid consumer spending.
For 2Q25, EA generated $2.03 billion in revenues, representing a year-on-year increase of 5.80%. Recent growth is attributable to the strength in the company's full games segment. EA's portfolio of games and new strategic initiatives is likely to accelerate the company's growth. In addition to revenue growth, the company is attempting to enhance its margin by focusing on its live service segment to expand top line while maintaining the cost of production.