EA$201.39
$201.95
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AI EA Summary
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Powered by LiveAIOverall Analysis
BuyElectronic Arts (EA) demonstrates a solid fundamental profile with consistent profitability and a stable balance sheet, complemented by positive long-term thematic trends in gaming. However, current technical indicators suggest a short-term consolidation or dip, warranting a 'Buy' rating with consideration for entry points.
Thematic
EA benefits from strong secular trends in the gaming industry, including digital transformation, live services, and the increasing popularity of esports. While competitive pressures exist, EA's established franchises provide a resilient market position.
Fundamental
EA demonstrates robust profitability, consistent revenue growth, and a healthy balance sheet, although its P/E ratio indicates a premium valuation.
Technical
The stock is trading near its 52-week high, but recent momentum indicators suggest it may be consolidating or facing resistance, with some short-term bearish signals.
| Factor | Score |
|---|---|
| Digital Transformation & Live Services | 85 |
| Esports & Competitive Gaming | 70 |
| Intellectual Property (IP) Leverage | 80 |
| Subscription Services | 75 |
| Emerging Technologies (e.g., Cloud Gaming, AI) | 65 |
| Factor | Score |
|---|---|
| Valuation | 60 |
| Profitability | 70 |
| Growth | 75 |
| Balance Sheet Health | 70 |
| Cash Flow | 85 |
| Dividend Yield | 50 |
| Factor | Score |
|---|---|
| Trend Analysis | 70 |
| Momentum | 50 |
| Short-term Momentum (Intraday) | 30 |
| Support & Resistance | 60 |
| Volume | 50 |
AI Investing Checklist
Powered by LiveAIBullish Points (7)
Strong EPS Beat
Electronic Arts Inc. (EA) reported Q2 2025 EPS of $1.21, beating the estimate of $1.09 by 11.01%. This indicates better-than-expected profitability.
Reasonable P/E Ratio
The trailing P/E ratio (PE_TTM) is 36.0. While not exceptionally low, it needs to be considered alongside the company's growth and industry comparables. The P/E for 2024 is reported at 30.1, suggesting a forward-looking valuation that might be more appealing.
Bearish Points (7)
High Forward P/E
The P/E ratio for 2025 is projected at 32.4 (based on Q1 2025 data), which, when compared to the reported 2024 P/E of 30.1 and TTM P/E of 36.0, suggests that while forward expectations are somewhat lower than TTM, the valuation remains relatively high for the industry. Quarterly P/E ratios for Q1 2025 (142.8) and Q2 2024 (137.0) are extremely high, indicating significant future growth expectations embedded in the price.
Slowing Revenue Growth
Annual revenue growth has slowed from $7.56 billion in 2024 to a projected $7.46 billion in 2025. Quarterly revenue also saw a dip from Q1 2024 ($1.78B) to Q1 2025 ($1.90B - re-reading data: actual Q1 2025 revenue is $1.895B, a modest increase but not strong growth. The data does not explicitly show deceleration from a higher previous quarter for annual figures. The income statement data shows quarterly revenue growth from Q1 2024 ($1.779B) to Q1 2025 ($1.895B), which is positive but not indicative of significant acceleration.) The provided annual income statement data shows revenue of $7.463B for 2025 Q1 and $7.562B for 2024 Q1. This is a slight decrease year-over-year, indicating potential revenue slowdown.
Calendar
May 2025
28
Ex-Dividend Date
June 2025
18
Next Dividend Date
July 2025
30
Next Earnings Date
H: $0.36
A: $0.12
L: $-0.05
H: 1.27B
A: 1.23B
L: 1.18B
Profile
Electronic Arts Inc. develops, markets, publishes, and delivers games, content, and services for game consoles, PCs, and mobile phones worldwide. It develops and publishes games and services across various genres, such as sports, racing, first-person shooter, action, role-playing, and simulation; and live services offerings, including extra content and subscription offerings through its global football and American football franchises, such as EA SPORTS College Football and EA SPORTS Madden NFL, as well as based on its IP comprising The Sims, Apex Legends, and Battlefield. The company markets and sells its games and services through digital distribution and retail channels; and directly to mass market retailers, specialty stores, and distribution arrangements. Electronic Arts Inc. was incorporated in 1982 and is headquartered in Redwood City, California.
Seasonals
Price Target
168.36 USD
The 39 analysts offering 1 year price forecasts for EA have a max estimate of 210.00 and a min estimate of 127.00.
Debt Level and Coverage
Financial Position Analysis
Ownership
Capital Structure
Valuation - Summary
Valuation - Ratios
Revenue to Profit Conversion
Balance Sheet
Income Statement
Cash Flow
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