Company Reports

Electronic Arts is one of the world's largest video game publishers and owns some of the most well-known video game franchises, including Sports FC (formerly FIFA), Madden, and Battlefield. We expect the firm will continue developing compelling new versions of its existing franchises, generating cash flow that provides the ability to invest in new titles and acquire established ones.

Electronic Arts’ third-quarter results were broadly in line with our expectations, based largely on the outlook the firm had provided. Regarding the fourth quarter and fiscal 2025, management expects somewhat weaker revenue growth than we had forecast but with stronger margin expansion. The firm plans to focus efforts on key franchises Sports FC, Madden NFL, Apex Legends, Battlefield, and The Sims, with a relatively modest release slate over the next year but accelerating beyond that. Our fair value estimate remains $150.

Narrow-moat Electronic Arts posted solid fiscal 2024 second-quarter results as its core sports franchises performed very well. While it didn’t have a big direct impact on the quarter, the launch of EA Sports FC 24, the rebranded version of FIFA, at the end of September has gone smoothly thus far. Management continues to expect global football revenue will increase at a low-single-digit rate versus FIFA 23 despite lapping last year’s World Cup. We are leaving our $150 fair value estimate unchanged and believe the shares are undervalued.

Electronic Arts is one of the world's largest video game publishers and owns some of the most well-known video game franchises, including FIFA, Madden, and Battlefield. We expect the firm will continue developing compelling new versions of its existing franchises, generating cash flow that provides the ability to invest in new titles like Apex Legends and acquire established ones like F1 from Codemasters.

Electronic Arts kicked off fiscal 2024 with a solid showing, as first-quarter bookings met and adjusted operating income came in ahead of FactSet consensus. EA benefited from strong core franchise growth as FIFA 23 drove increased engagement and Star Wars Jedi: Survivor built off the success of the original title. We are raising our fair value estimate to $150 from $142 due to improved margins and the launch of EA Sports FC, the rebranded version of FIFA.

Electronic Arts is one of the world's largest third-party video game publishers and owns some of the most well-known video game franchises including FIFA, Madden, and Battlefield. We believe the firm will consolidate its leading position by developing compelling new versions of its existing franchises, creating new ones like Apex Legends and acquiring established ones like F1 from Codemasters. We expect EA to continue to benefit from the increased availability of the current-generation consoles, the ongoing revitalization of PC gaming, and the growth in mobile gaming space.

Narrow-moat EA ended its fiscal 2023 strongly as fourth-quarter bookings and adjusted operating income both came well ahead of FactSet consensus. EA benefited from strong showings with core franchises as Apex Legends received a boost from its fourth anniversary and FIFA 23 became the bestselling launch in the franchise's long history. We are maintaining our $142 fair value estimate.

Electronic Arts reported a weaker-than-expected fiscal third quarter as bookings and adjusted operating income came in below FactSet consensus. More concerning than the miss were the announcements of a delay for the launch of Star Wars Jedi: Survivor to April 28 from March 17 and that Apex Legends Mobile will shut down on May 1. While the delay for Jedi is a short one, we think that the relatively late decision to delay the title is somewhat troubling, particularly since the launch date was only announced on Dec. 8, 2022. Also, EA has a mixed record with short delays. We are maintaining our fair value estimate of $142 for EA.

Electronic Arts posted a slightly better-than-expected fiscal second quarter as bookings met and adjusted operating income beat guidance. Even with an in-line first half, management lowered its fiscal 2023 top-line guidance due to currency headwinds and the mobile market slowdown. The sports portfolio drove bookings in the quarter due to Madden and F1. The fiscal second half of 2023 should benefit from not only the sports titles but also the December launch of the next installment of Need for Speed and the recent switch of the Sims 4 base game to free to play. We maintain our $142 fair value estimate.

EA kicked off fiscal 2023 on a slightly better-than-expected note, with bookings and adjusted operating income just beating guidance. However, management merely reiterated its fiscal 2023 guidance, given currency headwinds and a potential second-half slowdown in mobile. Despite the better-than-expected results, we believe that Battlefield 2042 remains a drag on top-line growth, an issue that we expect to persist through the year. While management noted the strength of sports and racing games as well as the impressive launch of Apex Legends Mobile on the earnings call, Battlefield was not discussed at all, despite its status as the one of the firm’s premier franchises. We are maintaining our $142 fair value estimate.

Electronic Arts is one of the world's largest third-party video game publishers and owns some of the most well-known video game franchises including FIFA, Madden, and Battlefield. We believe the firm will consolidate its leading position by developing compelling new versions of its existing franchises, creating new ones like Apex Legends and acquiring established ones like F1 from Codemasters. We expect EA to continue to benefit from the upcoming new generation of consoles, the ongoing revitalization of PC gaming, and the growth in mobile gaming space.

Electronic Arts posted a decent end to fiscal 2022 as bookings met and adjusted EBITDA beat FactSet consensus expectations. Even with strong bookings growth of 18%, the continued weak performance of Battlefield 2042 remains a drag on the top line that we expect to linger through fiscal 2023. The firm announced that the long-expected divorce with FIFA will happen for the 2024 edition of the game, to be released in the fall of 2023 and retitled as EA Sports FC. We expect minimal impact from the renaming as long as the game retains its other major licensing agreements. We keep our $142 fair value estimate.

Electronic Arts is one of the world's largest third-party video game publishers and owns some of the most well-known video game franchises including FIFA, Madden, and Battlefield. We believe the firm will consolidate its leading position by developing compelling new versions of its existing franchises, creating new ones like Apex Legends and acquiring established ones like F1 from Codemasters. We expect EA to continue to benefit from the upcoming new generation of consoles, the ongoing revitalization of PC gaming, and the growth in mobile gaming space.

Electronic Arts reported a mixed fiscal 2022 third quarter as bookings came under and adjusted EBITDA beat FactSet consensus expectations. The revenue miss was due in part to the troubled launch of Battlefield 2042 which had numerous performance issues and unpopular design choices. Due to the miss and a delay of the first season of live content for Battlefield 2042 until fiscal 2023, management lowered bookings guidance for the year to $7.5 billion. We maintaining our $142 fair value estimate as we expected a weak Battlefield launch.

Electronic Arts posted another strong quarter as fiscal 2022 second-quarter bookings and adjusted EBITDA handily beat FactSet consensus expectations. While the prior-year weakness due to the delayed FIFA launch meant net bookings more than doubled, the gain was still impressive given the positive conditions for gaming created by the lockdown restrictions during 2020. Management raised bookings guidance for the year, albeit by only 3% to $7.4 billion, based on the strong quarter.

Electronic Arts posted a strong start to fiscal 2022 as the first-quarter top and bottom lines beat FactSet consensus expectations. While the tough comp from last year meant that net bookings declined, the 4% drop was impressive given the positive conditions for gaming created by the lockdown restrictions. The strong quarter, particularly within live services, provided management with the confidence to raise top-line guidance for the year, albeit by only 1% to $7.4 billion. We are maintaining our narrow-moat rating and our $142 fair value estimate.

Electronic Arts is one of the world's largest third-party video game publishers and owns some of the most well-known video game franchises including FIFA, Madden, and Battlefield. We believe the firm will consolidate its leading position by developing compelling new versions of its existing franchises, creating new ones like Apex Legends and acquiring established ones like F1 from Codemasters. We expect EA to continue to benefit from the upcoming new generation of consoles, the ongoing revitalization of PC gaming, and the growth in mobile gaming space.

Electronic Arts is one of the world's largest third-party video game publishers and owns some of the most well-known video game franchises including FIFA, Madden, and Battlefield. We believe the firm will consolidate its leading position by developing compelling new versions of its existing franchises, creating new ones like Apex Legends and acquiring established ones like F1 from Codemasters. We expect EA to continue to benefit from the upcoming new generation of consoles, the ongoing revitalization of PC gaming, and the growth in mobile gaming space.

Electronic Arts posted a strong end to fiscal 2021 as the top and bottom lines for fourth quarter beat FactSet consensus expectations. Management expects 18% growth in net bookings for fiscal 2022 as the company benefits from its recent acquisitions of Codemasters, Glu Mobile, and Metalhead along with continued growth from EA Sports, Apex Legends, and Battlefield. We are maintaining our narrow moat rating and expect to raise our $134 fair value estimate after rolling our model to account for the higher than expected outlook for next year.

Electronic Arts is one of the world's largest third-party video game publishers and owns some of the most well-known video game franchises including FIFA, Madden, and Battlefield. We believe the firm will consolidate its leading position by developing compelling new versions of its existing franchises and creating new ones like Apex Legends. We expect EA to continue to benefit from the upcoming new generation of consoles, the ongoing revitalization of PC gaming, and the growth in mobile gaming space.