Electronic Arts (EA) Stock: Why The Price Increased Today

By Amit Chowdhry ● Feb 2, 2022
  • The stock price of Electronic Arts Inc. (NASDAQ: EA) increased by 5.56% today. This is why it happened.

The stock price of Electronic Arts Inc. (NASDAQ: EA) increased by 5.56% today. Investors appear to be responding to analyst reports following the third-quarter results.

EA reported Q3 EPS of $0.23 and the net bookings for the quarter were $2.577 billion compared to a consensus estimate of $2.68 billion.

The Q1 net bookings are expected to be $1.761 billion compared to a consensus of $1.81 billion. And the FY net bookings is expected to be approximately $7.525 billion compared to a consensus of $7.62 billion.

Despite the results being below estimates, most of the analysts maintained their “Buy” ratings on the company shares. For example, Stifel analyst Drew Crum noted that the Q3 results were in-line. And Crum noted that FIFA and Apex Legends delivered solid performances and mobile met his assumption while Battlefield 2042 missed internal forecasts, all of which were cited and contemplated in the preview report. Based on the performance and near/intermediate-term guidance, Crum updated his game model, though annual estimates are largely unchanged. The shares are trading at just 18.1x 2023 earnings, which Crum believes is reasonable as the valuation.

Disclaimer: This content is intended for informational purposes. Before making any investment, you should do your own analysis.