Is it time to Buy before this week’s earning report Electronic Arts (NASDAQ:EA)


Earnings results for Electronic Arts (NASDAQ:EA)

Electronic Arts Inc. is expected* to report earnings on 11/05/2020 after market close. The report will be for the fiscal Quarter ending Sep 2020. According to Zacks Investment Research, based on 9 analysts’ forecasts, the consensus EPS forecast for the quarter is $-0.29. The reported EPS for the same quarter last year was $0.71.

Electronic Arts last announced its earnings data on July 30th, 2020. The game software company reported $1.07 EPS for the quarter, beating analysts’ consensus estimates of $0.59 by $0.48. The business had revenue of $1.39 billion for the quarter, compared to the consensus estimate of $1.08 billion. Electronic Arts has generated $4.76 earnings per share over the last year and currently has a price-to-earnings ratio of 18.6. Electronic Arts has confirmed that its next quarterly earnings report will be published on Thursday, November 5th, 2020.

Analyst Opinion on Electronic Arts (NASDAQ:EA)

25 Wall Street analysts have issued ratings and price targets for Electronic Arts in the last 12 months. Their average twelve-month price target is $144.15, predicting that the stock has a possible upside of 15.04%. The high price target for EA is $170.00 and the low price target for EA is $120.00. There are currently 8 hold ratings, 16 buy ratings and 1 strong buy rating for the stock, resulting in a consensus rating of “Buy.”

Electronic Arts has received a consensus rating of Buy. The company’s average rating score is 2.72, and is based on 16 buy ratings, 8 hold ratings, and no sell ratings. According to analysts’ consensus price target of $144.15, Electronic Arts has a forecasted upside of 15.0% from its current price of $125.31. Electronic Arts has been the subject of 6 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Electronic Arts (NASDAQ:EA)

Electronic Arts does not currently pay a dividend. Electronic Arts does not have a long track record of dividend growth.

Insiders buying/selling: Electronic Arts (NASDAQ:EA)

In the past three months, Electronic Arts insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $74,173,039.00 in company stock. Only 0.92% of the stock of Electronic Arts is held by insiders. 90.75% of the stock of Electronic Arts is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Electronic Arts (NASDAQ:EA

Earnings for Electronic Arts are expected to grow by 10.42% in the coming year, from $4.32 to $4.77 per share. The P/E ratio of Electronic Arts is 18.56, which means that it is trading at a less expensive P/E ratio than the market average P/E ratio of about 19.27. The P/E ratio of Electronic Arts is 18.56, which means that it is trading at a less expensive P/E ratio than the Consumer Discretionary sector average P/E ratio of about 56.17. Electronic Arts has a PEG Ratio of 2.35. PEG Ratios above 1 indicate that a company could be overvalued. Electronic Arts has a P/B Ratio of 4.86. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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