Watch These 2 Things When Electronic Arts Reports Q1 Earnings

Electronic Arts Inc. (EA) Information Technology – Software | Reports May 10, After Market Closes

Key Takeaways

The Estimize consensus is calling for earnings per share of 46 cents on $893.67 million in revenue, 4 cents higher than Wall Street on the bottom line and $7 million on the top

Both Star Wars: Battlefront and Madden 2016 were in the top 5 best selling games of calendar 2015

EA continues to transition toward digital offerings and mobile gaming which has come at the cost of traditional packaged sales

What are you expecting for EA? Get your estimate in here!

Video game company, Electronic Arts (EA), is scheduled to report fourth quarter earnings tomorrow, after the market closes. Just like Disney, EA received a huge boost last quarter thanks to the success of Star Wars: The Force Awakens. Sales of Electronic Arts’ Star Wars based game, Battlefront, has already well surpassed the 13 million benchmark established for March. This quarter expects to see a seasonal drop off from the holiday season but should still see continued progress.

The Estimize consensus is calling for earnings per share of 46 cents on $893.67 million in revenue, 4 cents higher than Wall Street on the bottom line and $7 million on the top. Compared to a year earlier profits are predicted to increase 17% while sales are looking flat. Given EA’s strong earnings lately, it’s not surprising that shares are up 15% over the last 3 months, and this name tends to see large gains following earnings.

Last quarter’s beat was largely influenced by gains from Star Wars: Battlefront. The Star Wars based game surpassed all expectations but also drove higher subscriptions for Star Wars: The Old Republic. Apart from Star Wars, EA has been seen success across many of its other hits. Last year, Madden 2016 was the #1 sports title in the U.S. while FIFA topped that same list in Europe. Meanwhile the return of Need for Speed drew twice as many active players as the previous game. Players also logged more than 150 hours of gameplay from its first person shooting games, Battlefield.