We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Electronic Arts (EA) Q4 Earnings & Revenues Increase Y/Y
Read MoreHide Full Article
Electronic Arts (EA - Free Report) reported fourth-quarter fiscal 2020 earnings of $1.43 per share, which increased 107.2% year over year.
Revenues rose 12% year over year to $1.38 billion. Excluding the change in deferred revenues of $131 million and mobile platform fees of $43 million, net bookings declined 11.1% year over year to $1.21 billion.
The Zacks Consensus Estimate for earnings and revenues was pegged at 98 cents per share and $1.17 billion, respectively.
Quarter Details
Digital net bookings were $1.11 billion, increasing 6% year over year and representing 92% of total net bookings.
EA’s digital revenues (87.9% of total revenues) grew 14.5% year over year to $1.21 billion. However, packaged goods and other segment revenues (12.1% of total revenues) were down 2.9% year over year to $168 million.
Further segregating digital revenues, full game download revenues increased 25% year over year to $211 million. However, net bookings declined 10.8% year over year to $190 million.
Electronic Arts Inc. Price, Consensus and EPS Surprise
Live services revenues rose 17% year over year to $832 million while net bookings declined 6.6% year over year to $789 million.
Mobile games revenues decreased 3% year over year to $176 million. Net bookings increased 2.2% year over year to $138 million.
Based on its platforms, revenues from console increased 12% year over year to $928 million. Net bookings from console declined 7.9% year over year to $707 million.
Revenues from PC/browser were up 24% year over year to $269 million. Net bookings from PC/browser declined 6.2% year over year to $272 million.
Meanwhile, revenues from mobile platform dropped 3% year over year to $185 million. Net bookings from mobile improved 2.2% year over year to $138 million driven by strong popularity of sports titles in Asia.
Other revenues remained flat year over year at $5 million.
Important Game & Player Metrics
Star Wars: Jedi Fallen Order witnessed strong popularity with more than 10 million unique players joining the game since launch.
Moreover, Madden NFL 20 is delivering the highest engagement levels in Madden’s more than 30-year history.
Further, FIFA grew year over year in the fiscal fourth quarter. With approximately 100 million players engaging globally in FIFA franchise and more than 25 million unique players joining FIFA 20 till date, the addition of VOLTA Football to FIFA 20 and the updates to FIFA Ultimate Team further boosted player engagement in the reported quarter.
Moreover, FIFA Online continued to perform strongly especially in Asia amid coronavirus lockdown.
Notably, Apex Legends Season 4 had already outperformed in each of the two prior seasons, even before COVID-19 stay-at-home orders were rolled out. Meanwhile, Apex E-sports tournaments generated around two times the average viewing audience compared to other top E-sports leagues.
Further, the company delivered live service content while working from home, including FIFA Ultimate Team events, Madden Ultimate Team content for the NFL Draft, and new additions to Star Wars Galaxy of Heroes.
Operating Details
EA’s GAAP gross profit increased 16.2% from the year-ago quarter to $1.11 billion. Gross margin expanded 290 basis points (bps) on a year-over-year basis to 80.6%.
Operating expenses declined 6.4% from the year-ago quarter to $771 million. As a percentage of revenues, operating expenses contracted to 51.7% from 61.9% in the year-ago quarter.
As a percentage of revenues, marketing & sales (M&S) and research & development (R&D) expenses shrank 650 bps and 320 bps, respectively. Meanwhile, general & administrative (G&A) expenses expanded 30 bps in the reported quarter.
Operating income on a GAAP basis surged 104.6% year over year to $401 million. As a percentage of revenues, operating margin expanded to 28.9% from 15.8% in the year-ago quarter.
Balance Sheet and Cash Flow
As of Mar 31, 2020, EA had $5.7 billion in cash and short-term investments compared with $5.6 billion as of Dec 31, 2019.
EA has $1 billion in senior notes as of Mar 31, 2020, with $600 million maturing in March 2021, and $400 million due in 2026.
Net cash from operating activities in the reported quarter was $$1.79 billion compared with $1.10 billion in the previous quarter.
EA repurchased 2.7 million shares for $291 million in the reported quarter.
Guidance
For the first quarter of fiscal 2021, EA expects GAAP revenues of $1.22 billion. Net bookings are expected to be $1 billion.
EA anticipates operating expenses of $635 million. Earnings are expected to be 93 cents per share.
For fiscal 2021, EA expects GAAP revenues of $5.525 billion and net bookings of $5.55 billion.
Moreover, EA anticipates operating expenses of $2.85 billion for the fiscal.
Additionally, earnings are expected to be $3.35 per share.
Operating cash flow is estimated to be $1.575 billion.
The three companies are scheduled to report quarterly results on May 7.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
Image: Bigstock
Electronic Arts (EA) Q4 Earnings & Revenues Increase Y/Y
Electronic Arts (EA - Free Report) reported fourth-quarter fiscal 2020 earnings of $1.43 per share, which increased 107.2% year over year.
Revenues rose 12% year over year to $1.38 billion. Excluding the change in deferred revenues of $131 million and mobile platform fees of $43 million, net bookings declined 11.1% year over year to $1.21 billion.
The Zacks Consensus Estimate for earnings and revenues was pegged at 98 cents per share and $1.17 billion, respectively.
Quarter Details
Digital net bookings were $1.11 billion, increasing 6% year over year and representing 92% of total net bookings.
EA’s digital revenues (87.9% of total revenues) grew 14.5% year over year to $1.21 billion. However, packaged goods and other segment revenues (12.1% of total revenues) were down 2.9% year over year to $168 million.
Further segregating digital revenues, full game download revenues increased 25% year over year to $211 million. However, net bookings declined 10.8% year over year to $190 million.
Electronic Arts Inc. Price, Consensus and EPS Surprise
Electronic Arts Inc. price-consensus-eps-surprise-chart | Electronic Arts Inc. Quote
Live services revenues rose 17% year over year to $832 million while net bookings declined 6.6% year over year to $789 million.
Mobile games revenues decreased 3% year over year to $176 million. Net bookings increased 2.2% year over year to $138 million.
Based on its platforms, revenues from console increased 12% year over year to $928 million. Net bookings from console declined 7.9% year over year to $707 million.
Revenues from PC/browser were up 24% year over year to $269 million. Net bookings from PC/browser declined 6.2% year over year to $272 million.
Meanwhile, revenues from mobile platform dropped 3% year over year to $185 million. Net bookings from mobile improved 2.2% year over year to $138 million driven by strong popularity of sports titles in Asia.
Other revenues remained flat year over year at $5 million.
Important Game & Player Metrics
Star Wars: Jedi Fallen Order witnessed strong popularity with more than 10 million unique players joining the game since launch.
Moreover, Madden NFL 20 is delivering the highest engagement levels in Madden’s more than 30-year history.
Further, FIFA grew year over year in the fiscal fourth quarter. With approximately 100 million players engaging globally in FIFA franchise and more than 25 million unique players joining FIFA 20 till date, the addition of VOLTA Football to FIFA 20 and the updates to FIFA Ultimate Team further boosted player engagement in the reported quarter.
Moreover, FIFA Online continued to perform strongly especially in Asia amid coronavirus lockdown.
Notably, Apex Legends Season 4 had already outperformed in each of the two prior seasons, even before COVID-19 stay-at-home orders were rolled out. Meanwhile, Apex E-sports tournaments generated around two times the average viewing audience compared to other top E-sports leagues.
Further, the company delivered live service content while working from home, including FIFA Ultimate Team events, Madden Ultimate Team content for the NFL Draft, and new additions to Star Wars Galaxy of Heroes.
Operating Details
EA’s GAAP gross profit increased 16.2% from the year-ago quarter to $1.11 billion. Gross margin expanded 290 basis points (bps) on a year-over-year basis to 80.6%.
Operating expenses declined 6.4% from the year-ago quarter to $771 million. As a percentage of revenues, operating expenses contracted to 51.7% from 61.9% in the year-ago quarter.
As a percentage of revenues, marketing & sales (M&S) and research & development (R&D) expenses shrank 650 bps and 320 bps, respectively. Meanwhile, general & administrative (G&A) expenses expanded 30 bps in the reported quarter.
Operating income on a GAAP basis surged 104.6% year over year to $401 million. As a percentage of revenues, operating margin expanded to 28.9% from 15.8% in the year-ago quarter.
Balance Sheet and Cash Flow
As of Mar 31, 2020, EA had $5.7 billion in cash and short-term investments compared with $5.6 billion as of Dec 31, 2019.
EA has $1 billion in senior notes as of Mar 31, 2020, with $600 million maturing in March 2021, and $400 million due in 2026.
Net cash from operating activities in the reported quarter was $$1.79 billion compared with $1.10 billion in the previous quarter.
EA repurchased 2.7 million shares for $291 million in the reported quarter.
Guidance
For the first quarter of fiscal 2021, EA expects GAAP revenues of $1.22 billion. Net bookings are expected to be $1 billion.
EA anticipates operating expenses of $635 million. Earnings are expected to be 93 cents per share.
For fiscal 2021, EA expects GAAP revenues of $5.525 billion and net bookings of $5.55 billion.
Moreover, EA anticipates operating expenses of $2.85 billion for the fiscal.
Additionally, earnings are expected to be $3.35 per share.
Operating cash flow is estimated to be $1.575 billion.
Zacks Rank & Other Stocks to Consider
EA currently sports a Zacks Rank #1 (Strong Buy).
Vista Outdoor (VSTO - Free Report) , DISH Corporation and Roku (ROKU - Free Report) are a few other top-ranked stocks from the broader Consumer & Discretionary sector. While Vista Outdoor sports a Zacks Rank #1, DISH and Roku carry a Zacks Rank #2 (Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
The three companies are scheduled to report quarterly results on May 7.
Today's Best Stocks from Zacks
Would you like to see the updated picks from our best market-beating strategies? From 2017 through 2019, while the S&P 500 gained and impressive +53.6%, five of our strategies returned +65.8%, +97.1%, +118.0%, +175.7% and even +186.7%.
This outperformance has not just been a recent phenomenon. From 2000 – 2019, while the S&P averaged +6.0% per year, our top strategies averaged up to +54.7% per year.
See their latest picks free >>