Electronic Arts (NASDAQ:EA) Posts Quarterly Earnings Results, Misses Expectations By $1.07 EPS

Electronic Arts (NASDAQ:EA) announced its earnings results on Tuesday. The game software company reported $2.34 earnings per share for the quarter, missing the consensus estimate of $3.41 by ($1.07), Zacks reports. Electronic Arts had a return on equity of 18.56% and a net margin of 14.12%.

Electronic Arts Stock Down 1.4 %

EA traded down $1.66 during trading hours on Tuesday, hitting $121.25. 7,116,564 shares of the company’s stock were exchanged, compared to its average volume of 4,248,887. The firm has a market cap of $31.80 billion, a P/E ratio of 31.17, a price-to-earnings-growth ratio of 2.50 and a beta of 0.79. Electronic Arts has a 12-month low of $115.21 and a 12-month high of $168.50. The company has a current ratio of 1.43, a quick ratio of 1.43 and a debt-to-equity ratio of 0.25. The firm has a 50 day moving average of $146.84 and a 200 day moving average of $147.79.

Insiders Place Their Bets

In other Electronic Arts news, insider Laura Miele sold 2,500 shares of the stock in a transaction that occurred on Wednesday, November 6th. The shares were sold at an average price of $158.03, for a total value of $395,075.00. Following the transaction, the insider now directly owns 50,433 shares in the company, valued at $7,969,926.99. This represents a 4.72 % decrease in their ownership of the stock. The sale was disclosed in a document filed with the SEC, which is available at this hyperlink. Also, CEO Andrew Wilson sold 5,000 shares of the business’s stock in a transaction that occurred on Tuesday, January 21st. The stock was sold at an average price of $142.68, for a total transaction of $713,400.00. Following the sale, the chief executive officer now owns 42,615 shares of the company’s stock, valued at $6,080,308.20. This represents a 10.50 % decrease in their position. The disclosure for this sale can be found here. Insiders sold a total of 25,000 shares of company stock worth $3,835,555 over the last 90 days. Corporate insiders own 0.22% of the company’s stock.

Analyst Ratings Changes

Several equities analysts recently weighed in on EA shares. StockNews.com upgraded shares of Electronic Arts from a “buy” rating to a “strong-buy” rating in a report on Thursday, October 31st. Robert W. Baird lowered their target price on Electronic Arts from $175.00 to $158.00 and set an “outperform” rating on the stock in a research note on Thursday, January 23rd. Moffett Nathanson upgraded shares of Electronic Arts from a “neutral” rating to a “buy” rating and set a $145.00 target price for the company in a research note on Friday. Raymond James cut shares of Electronic Arts from an “outperform” rating to a “market perform” rating in a report on Thursday, January 23rd. Finally, Benchmark restated a “buy” rating and issued a $163.00 price target on shares of Electronic Arts in a research note on Wednesday, October 30th. Twelve research analysts have rated the stock with a hold rating, nine have assigned a buy rating and one has given a strong buy rating to the company. Based on data from MarketBeat, the company presently has a consensus rating of “Moderate Buy” and a consensus target price of $156.38.

Electronic Arts Company Profile

Electronic Arts Inc develops, markets, publishes, and distributes games, content, and services for game consoles, PCs, mobile phones, and tablets worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation primarily under the Battlefield, The Sims, Apex Legends, Need for Speed, and license games from others, including FIFA, Madden NFL, UFC, and Star Wars brands.