5 Revealing Analyst Questions From Electronic Arts's Q1 Earnings Call
Electronic Arts delivered first quarter results that exceeded Wall Street's expectations, driven by a rebound in flagship sports franchises and a successful new game launch. Management pointed to renewed engagement in the EA SPORTS FC series following major gameplay updates, as well as strong momentum in American football titles and double-digit growth in The Sims. CEO Andrew Wilson credited the company's rapid response to community feedback and targeted content drops for restoring player engagement, especially after a temporary slowdown in FC. The launch of new intellectual property, Split Fiction, also outperformed internal expectations, reflecting the strength of EA's diversified portfolio.
Is now the time to buy EA? Find out in our full research report (it's free).
Revenue: $1.9 billion vs analyst estimates of $1.76 billion (6.5% year-on-year growth, 7.6% beat)
EPS (GAAP): $0.98 vs analyst estimates of $0.91 (8.2% beat)
Revenue Guidance for Q2 CY2025 is $1.6 billion at the midpoint, above analyst estimates of $1.45 billion
EPS (GAAP) guidance for the upcoming financial year 2026 is $3.44 at the midpoint, missing analyst estimates by 23.4%
Operating Margin: 20.8%, up from 13.2% in the same quarter last year
Market Capitalization: $39.63 billion
While we enjoy listening to the management's commentary, our favorite part of earnings calls are the analyst questions. Those are unscripted and can often highlight topics that management teams would rather avoid or topics where the answer is complicated. Here is what has caught our attention.
Matthew Cost (Morgan Stanley) asked about the drivers of the EA SPORTS FC rebound. CEO Andrew Wilson explained that a combination of personalized marketing and a significant gameplay update restored player engagement among key cohorts.
Eric Sheridan (Goldman Sachs) questioned Battlefield's development and go-to-market investments. Wilson emphasized deeper community collaboration through Battlefield Labs, while CFO Stuart Canfield clarified that increased marketing costs were the main driver of incremental expenses.
Doug Creutz (TD Cowen) inquired about American football's growth outlook. Wilson pointed to broader fandom for both NFL and college football, while Canfield signaled balanced guidance to account for tough year-over-year comparisons.
Chris Schoell (UBS) asked about macroeconomic risks and pricing power. Wilson highlighted the resilience of major franchises during downturns and described pricing as focused on quality and value, with no immediate changes planned.
Eric Handler (ROTH Capital Partners) sought insight into World Cup monetization. Wilson stated that such global events consistently drive player acquisition and engagement, especially in North America, benefiting the EA SPORTS FC franchise.
Looking forward, our analysts will be monitoring (1) the player reception and engagement levels for new releases like Battlefield and Skate, (2) ongoing progress in mobile expansion and international football market penetration, and (3) the effectiveness of live service content and real-world sports event tie-ins. The trajectory of Apex Legends and the impact of resource realignment will also be important to track.
Electronic Arts currently trades at $157.40, up from $154.55 just before the earnings. Is the company at an inflection point that warrants a buy or sell? See for yourself in our full research report (it's free).
The market surged in 2024 and reached record highs after Donald Trump's presidential victory in November, but questions about new economic policies are adding much uncertainty for 2025.
While the crowd speculates what might happen next, we're homing in on the companies that can succeed regardless of the political or macroeconomic environment. Put yourself in the driver's seat and build a durable portfolio by checking out our Top 5 Strong Momentum Stocks for this week. This is a curated list of our High Quality stocks that have generated a market-beating return of 183% over the last five years (as of March 31st 2025).
Stocks that made our list in 2020 include now familiar names such as Nvidia (+1,545% between March 2020 and March 2025) as well as under-the-radar businesses like the once-micro-cap company Kadant (+351% five-year return). Find your next big winner with StockStory today.
Hashtags
Try Our AI Features
Explore what Daily8 AI can do for you:
Comments
No comments yet...
Related Articles
Yahoo
33 minutes ago
- Yahoo
OT7 Finals: Top performers from opening day
FT. LAUDERDALE, Fla. – The first full day of action at the OT7 Finals in South Florida kicked off on Friday with a loaded field. Some of the teams that made the championship round were delayed thanks to Mother Nature, but there were plenty of big-time players and performances to take in before and after that point. Rivals was on hand and takes a closer look at the best in show. OT7 FINALS: Recruiting Rumor Mill CLASS OF 2026 RANKINGS: Rivals250 | Team | Position | State CLASS OF 2027 RANKINGS: Rivals250 | Team | Position | State 1. Derrick Baker The Sunshine State native now at Milton (Ga.) High School was back at his old high school field and dialed in. Baker was able to work through progressions quickly and fire in footballs with high RPMs through tight windows. Advertisement It led to a bevy of scores against just one turnover that wasn't even his fault (tipped by wide receiver) on an undefeated first day. Baker even got to flash the wheels and situational awareness in avoiding the blitz and picking up chunks with his legs during the nightcap. 2. Tylan Wilson Among the bulk of the games we took in, there wasn't a safety who made as many plays on the football as the Mississippi native wth Texas A&M buzz to his name. Wilson has excellent range and comes off the hash with a purpose, separating the ball from the wide receiver on several occasions upon arrival. Advertisement Even when the PBUs didn't rack up, Wilson was in position to make plays well more than not. The length and instincts are also strong within the four-star's game. 3. Jamar Owens The 7-on-7 game is about possessions and Owens not only flipped the field with a pair of interceptions, but he took each tender to the house for points. The first was an instinctive jump on the football for a walk-in score but the second was even better, coming off of one wide receiver to play the lane and snag the INT. Owens made other plays down the field, including in the end zone, even somehow showing some physicality along the way. 4. Larry Miles It was another day at the office for Miles, who commits on July 1. He is crafty in and out of his breaks and certainly flashes top speed in short order with the ball in his hands. But the element that the four-star flashed most on this day was his strong hands. Advertisement He collected the football in traffic on routine, particularly in his first game en route to three touchdowns, and gripped it away from his frame with ease. 5. Jonas Williams The USC commitment stood in ready to launch from the outset on Friday. He pushes the ball down the field with true ease and while he showed that part of his game off, he was even more impressive in tight quarters and near the end zone. Williams can work a fast ball but also layered it well over the middle. Just as importantly, there were no glaring mistakes in his game, he took what the defense gave him or dirted the ball when nothing was presented. Advertisement SHARE YOUR THOUGHTS WITH USC FANS AT 6. Zion Crumpton The recent Mississippi State commitment didn't collect the volume of receptions some of the others on the list did, but the flashes were among the most head-turning of the day coming from any position. Crumpton hit the high point on a pair of touchdown grabs, drawing audible reactions from the crowd on each – and one right after the other. The bounce and ball skills may have been the best of the day and the final snag sent a game to overtime. SHARE YOUR THOUGHTS WITH MISSISSIPPI STATE FANS AT 7. Devin Fitzgerald The NFL legacy stole the show at the All-Star Game on Thursday night, taking home MVP honors after multiple touchdown grabs, and he had another pair of scores to his name in the national television showcase to end the evening. Advertisement Fitzgerald has added good weight to his frame but, to the surprise of few, he carries the mass well and shows polish as a route-runner out of his breaks. The rising senior's score on a 7-cut at the back pylon was a sample of his all-around game on one play, getting the defender off of his hip without much wasted motion before a snag away from his body. 8. Naeem Burroughs The Clemson commitment is known for speed and he showed it off on multiple occasions, including on a bang-8 route in which he created separation on multiple defenders in the end zone. Burroughs has more polish than given credit for and that was on display, too, in two of his touchdown grabs to round out his first game. One came in tight quarters in traffic and the other came with all of his momentum pushing him toward the sideline, extending for the football while dragging his feet. Advertisement SHARE YOUR THOUGHTS WITH CLEMSON FANS AT 9. Aaron Gregory The Texas A&M commitment is steady and just makes plays. On this day he flashed on both sides of the ball, making his initial plays at safety with a pair of PBUs and a key interception during C1N's upset of SFE. Gregory got back to what he does best in the night camp, snagging plenty of passes away from his frame in the end zone for touchdowns and conversions alike. Gregory has great body control and maximizes a classic X frame to present a large target for the passer. SHARE YOUR THOUGHTS WITH TEXAS A&M FANS AT 10. Gavin Sidwar The Mizzou quarterback commitment put up consistent points to kick off his OT7 Finals slate, both working the ball all over the field but also manipulating speed along the way. Advertisement He anticipated well from the outside in and even threw some of his targets open against tight coverage. It isn't flashy, but the blue-chipper moves the football and keeps his team in the thick of it. SHARE YOUR THOUGHTS WITH MISSOURI FANS AT NOTES *The talk of the morning session was the offseason debut for five-star quarterback Jared Curtis. The Georgia commitment needed some time to settle in with a team and targets he has known for some 24 hours, but when it looked right, the big passer answered the bell. He showed competitiveness and plenty of arm talent in pushing the football down the field on routine. Advertisement *The catch of the day belonged to one of the youngest players in attendance in rising-sophomore Brysen Wright, who skied for a one-handed snag along the sidelines despite contested work from the defender. *A matchup worth the price of admission we may see more intensity from provided several strong samples Friday when Jordan Clay and Danny Odem tangled. The rising-seniors each made tough plays against one another in the end zone, sparking the type of tension that may carry over to the weekend. *Lorenzo Aguirre led the RG3 team to the upset of the night, a late comeback win over Cam Newton's squad and it came with two of the prettiest deep balls of the entire day. The winning "onside throw" got behind several FBS secondary recruits. *There weren't many players who snagged multiple interceptions on a somewhat limited day, but Houston commit Kah'ni Watts did just that. The first came early in the action, snagging the INT and taking it to the house without much contention. The second showcased some instincts and more ball skills, picking one off after a deflection and nearly taking that one the distance.
Hamilton Spectator
35 minutes ago
- Hamilton Spectator
Donald Trump says he's cutting off trade talks with Canada over Ottawa's digital tax
OTTAWA — U.S. President Donald Trump said Friday that he is cutting off all trade talks with Canada over the federal government's digital services tax that would impact American tech giants, calling it a 'blatant attack' on the United States. Trump announced his plan to end trade talks in a social media post Friday afternoon, less than two weeks after he agreed with Prime Minister Mark Carney at the G7 summit on June 16 to work toward a deal to end the ongoing trade war within 30 days . 'Based on this egregious Tax, we are hereby terminating ALL discussions on Trade with Canada, effective immediately,' Trump's post said. 'We will let Canada know the Tariff that they will be paying to do business with the United States of America within the next seven day period.' The Prime Minister's Office responded later Friday afternoon with a short statement that did not mention the digital services tax and expressed Canada's desire to continue the trade talks. 'The Canadian government will continue to engage in these complex negotiations with the United States in the best interest of Canadian workers and businesses,' the statement said. Finance Minister François-Philippe Champagne said as recently as two weeks ago that Ottawa would press ahead with the tax, which is set to start collecting money on Monday. Prime Minister Mark Carney comments moments after U.S. President Donald Trump said that he was "terminating all discussions on trade with Canada" and threatened new tariffs over Ottawa's plans to push ahead with a digital services tax. Carney called the negotiations "complex." (June 27, 2025 / The Canadian Press) On social media, Conservative Leader Pierre Poilievre said he was disappointed to hear that trade talks have halted, and that he hopes they resume quickly. He also did not name the digital services tax, but pointed to changes his party has long argued will improve the Canadian economy, including the repeal of the existing federal project assessment regime and industrial carbon pricing. 'As always, Conservatives are ready to help get a good deal for Canada,' Poilievre's statement said. 'We must put Canada first.' Under Trump, the U.S. has imposed a series of tariffs on Canadian steel, aluminum, autos and other goods that Canada views as illegal and unjustified. Ottawa has responded with a raft of counter-tariffs in a trade war that Carney vowed during the spring campaign to 'win.' The prime minister has since embarked on talks with Trump, which Carney said are designed to renegotiate Canada's trade and security relationship with the economic and military juggernaut to the south. Flavio Volpe, president of the Automotive Parts Manufacturers' Association, was part of the prime minister's Canada-U.S. council that met virtually on Friday, just as Trump declared he would terminate trade talks. In an interview with the Star, Volpe said he remains cautiously optimistic, and that surprising twists have become an expectation since Trump returned to the White House in January. 'Is this a pressure moment in a negotiation, or is it really the end of the conversation? I don't know. But you know who does know? Donald Trump, who is, in this style of negotiation, a master,' Volpe said. 'Because the prime minister and the president are in direct communication, and have been for the last couple months, I will save my panic for … if the PM suggests we should panic.' Brian Clow, a former deputy chief of staff and senior adviser to prime minister Justin Trudeau, told the Star that it's not surprising Trump would target the tax, which was a trade irritant when Joe Biden was president as well. He urged the Carney government to stay calm and keep trying to talk to its American counterparts. He also said the government should not consider dropping the digital services tax unless the move is part of a broader trade deal with the Trump administration. 'To a certain extent, what we just saw from Donald Trump is exactly from his playbook. We've seen it so many times before,' Clow said. 'This is how he negotiates. He negotiates by threat, attempting to intimidate to yield more concessions from Canada. This is just a part of how it works and they've got to keep talking and hopefully come to some sort of deal.' The trade war has rattled businesses and workers across the country, with layoffs at auto plants and steel factory shutdowns in recent weeks. Trump doubled his steel and aluminum tariffs to 50 per cent against Canada on June 4, arguing the tariffs are needed to protect and promote a key American industry, as his broader policy of tariffs is designed to raise government revenues and overcome what the U.S. president argues is unfair commercial relations for his country. The Liberal government has long planned to impose a tax on digital services, which Trump views as an unfair trade practice that will hit American companies like Google and Meta. In his social media post Friday, Trump alluded to how the European Union is planning a similar digital services tax, and said Canada was 'copying' the bloc of states with 'a direct and blatant attack on our Country.' On Thursday, U.S. Treasury Secretary Scott Bessent announced that the G7 — a group of rich democracies that includes Canada — agreed to exempt American companies from certain taxes. In return, the Trump administration would remove a so-called 'revenge tax' from a sweeping bill in the U.S. Congress, which would have imposed taxes on investments from countries the U.S. deemed to be treating American firms unfairly. President Donald Trump said he's immediately suspending trade talks with Canada over its plans to continue with its tax on technology firms. Trump said the Canadians was sticking to its plan to impose the tax set to take effect Monday. (AP Video / June 27, 2025) Neither the PMO nor Champagne's office responded Friday when asked if that deal impacted Canada's digital services tax. The policy, enacted in 2024's Digital Services Tax Act , imposed a three per cent tax on revenue earned from online marketing and advertising, social media and some sales of user data. The tax applies to domestic and foreign businesses that reap more than $1.1 billion in global revenue and earn more than $20 million of revenue within Canada in a given year. The Liberals promised to introduce the tax in 2019, and argued hiking tax on big companies could help pay for social services and other public investments to spur the economy. The independent Parliamentary Budget Officer reported in 2023 that the tax would raise about $1.2 billion per year in government revenues. In a written statement Friday, the head of the Business Council of Canada said it has warned the government for the past three years that the digital services tax 'could risk undermining' Canada's economic relationship with the U.S. Goldy Hyder called on Canada to immediately propose to eliminate the tax, in exchange for the removal of American tariffs on Canadian goods. Catherine Cobden, president and chief executive officer of the Canadian Steel Producers Association, said Friday that trade relations are so unpredictable and uncertain with the U.S. that even a new deal to remove current tariffs can no longer be seen as a guarantee. She called for stronger measures to encourage using domestically produced steel in Canada, and other steps to protect the sector. 'We are really under attack by the United States, so we are rapidly pivoting away from that market,' she said. Another business group that has opposed the digital services tax, the Canadian Chamber of Commerce, said Friday that 'surprises' should be expected in negotiations. 'The tone and tenor of talks has improved in recent months, and we hope to see progress continue,' said the chamber's president, Candace Laing. 'We respect that Team Canada is conducting these negotiations at the table, and we need to give them the space to navigate.'
Yahoo
39 minutes ago
- Yahoo
Morning Bid: Wall St flirts with new record
By Mike Dolan LONDON (Reuters) - What matters in U.S. and global markets today By Mike Dolan, Editor-At-Large, Finance and Markets The glass appears half full once again. With midyear approaching, the main Wall Street stock indexes are back within a hair's breadth of new records, helped along by a weakening dollar, the prospect of lower borrowing rates, increasing trade optimism and a renewed focus on the artificial intelligence theme. Throw in some positive tax and regulatory twists, and now we're likely to see new highs for the S&P 500 and Nasdaq later today. It's Friday, so today I'll provide a quick overview of what's happening in global markets and then offer you some weekend reading suggestions away from the headlines. Today's Market Minute * The United States has reached an agreement with China on how to expedite rare earth shipments to the U.S., a White House official said on Thursday, amid efforts to end a trade war between the world's biggest economies. * European Union leaders discussed new proposals from the United States on a trade deal at a summit in Brussels on Thursday, with Commission President Ursula von der Leyen not ruling out tariff talks could fail and saying "all options remain on the table". * Iran would respond to any future U.S. attack by striking American military bases in the Middle East, Supreme Leader Ayatollah Ali Khamenei said on Thursday, in his first televised remarks since a ceasefire was reached between Iran and Israel. * U.S. Treasury Secretary Scott Bessent on Thursday asked Republicans in Congress to remove a "retaliatory tax" proposal that targets foreign investors from their sweeping budget legislation, as lawmakers struggled to find a path forward on the bill. * What will be the biggest pain trades in the second half of 2025? ROI columnist Jamie McGeever discusses the most vulnerable positions. Wall St flirts with new record While still underperforming the MSCI's all-country index for the year so far, and lagging euro zone stocks by some 20% in dollar terms in 2025, the S&P500 has all but completed a remarkable 20% round trip from the peak of February to the troughs of April and back. The VIX 'fear index' ebbed to its lowest in four months, while gold prices slipped to their lowest in almost a month. With more than 40% of S&P500 revenues coming from overseas, the dollar's slide to 3-year lows this week spotlights a 10%-plus currency tailwind in 2025. The greenback remained near the year's lows on Friday. And even though President Donald Trump's harrying of Federal Reserve Chair Jerome Powell unnerves many about the long-term inflation impact of threatening Fed independence, it has stepped up bets about a resumption of interest rate cuts - and most clearly after Powell's term ends next year. While markets awaited the latest U.S. May inflation update later on Friday - with oil prices brushing off the latest Middle East conflict to resume a near 20% year-on-year drop - two and 10-year Treasury yields fell to their lowest since early May on Thursday. The bond market has been soothed in part by this week's Fed proposal on overhauling how much capital large global banks must hold against relatively low-risk assets, part of a bid to boost banks' participation in Treasury markets. But markets got a further lift overnight from signs of some movement on bilateral trade negotiations ahead of July 9's expiry of the 90-day pause on Trump's sweeping tariff hikes. The White House said the United States reached an agreement with China on how to expedite rare earth shipments to the U.S. European Union leaders discussed new proposals from the United States on a trade deal at a summit in Brussels late on Thursday, with Commission President Ursula von der Leyen saying "all options remain on the table". German Chancellor Friedrich Merz urged the EU to do a "quick and simple" trade deal rather than a "slow and complicated" one, even as French President Emmanuel Macron struck a cautious note. And while the U.S. fiscal bill is still struggling through the Senate, there was an important development on tax provisions that may ease foreign investor concerns. Treasury Secretary Scott Bessent asked Republicans in Congress to remove a "retaliatory tax" proposal - the controversial Section 899 that targets foreign investors with higher tax in retaliation for any overseas disputes. Justifying the removal, Bessent said that under a G7 agreement, a 15% global corporate minimum tax will not apply to U.S. companies under "Pillar 2" of the Organization for Economic Cooperation and Development tax deal. The latest economic numbers, meantime, were a mixed bag but show few signs of a sharp downturn yet. Durable goods orders boomed in May well above forecasts, while the labor market remained resilient with a drop in weekly jobless claims. May trade data, on the other hand, showed a sharp drop in exports. As the second-quarter earnings season comes into view next month, the longer-term AI investment theme was given a fresh spur from an above-forecast revenue readout from Micron Technology - even though its stock ended lower on Thursday. AI darling Nvidia hit a new record high, however, up more than 80% from the lows of April. In other corporate news, Nike's shares jumped 10% overnight as its first-quarter revenue outlook exceeded market expectations. Elsewhere, stocks in Europe were sharply higher on Friday - chiming with Wall Street. They have been boosted by the defense spending push at this week's NATO summit and as details of Germany's big fiscal stimulus unfolded. German lawmakers on Thursday passed a multi-billion-euro package of fiscal relief measures to support companies and boost investment, involving corporate tax breaks amounting to almost 46 billion euros ($54 billion) from this year through to 2029. Despite the positive noises on a U.S. trade deal, Chinese stocks bucked the global trend and were in the red on Friday. China's industrial profits swung back into sharp decline, falling 9.1% in May from a year earlier, as factory activity slowed in the face of broader economic stress. There was better news in Japan as core consumer inflation in Tokyo slowed sharply in June. Tech stocks led the Nikkei up more than 1%. Weekend reads: * TARIFF DAMAGE: Even though President Donald Trump appears to have retreated from his more extreme trade tariff plans due to market, industry and political pushback, trade barriers will damage the economy over the next decade. So claims a Peterson Institute paper by Warwick McKibbin, Marcus Noland and Geoffrey Shuetrim, who estimate the impact under five different scenarios - which get worse the bigger the retaliation overseas and the higher the country risk premium demanded by global investors. "Contrary to Trump's promises to revive U.S. industry, America's manufacturing and agriculture sectors see disproportionate losses in production and employment due to his tariffs." * OPAQUE DEBT: Global sovereign debt vulnerability is rising and 54% of low-income countries are already in or at high risk of debt distress, with many spending more on debt repayments than on education, healthcare and infrastructure combined. With frequent global shocks adding to the risk, the World Bank's Axel van Trotsenburg argues on Project Syndicate that debt obligations are now more complex, with a wider range of creditors and some borrowing occurring behind closed doors and outside the scrutiny of oversight mechanisms. "Without urgent action to improve transparency, unsustainable debt-service burdens in the developing world will become common." * UKRAINE VS RUSSIA IN AFRICA: On Africa's dry western tip, Mauritania has become an unlikely staging post for Ukraine's increasingly global struggle with its adversary Russia. Reuters' Jessica Donati and Olena Harmash detail Kyiv's Africa Strategy in seeking allies with aide and embassies - countering Russia's much more entrenched presence in the continent. * SIU SIMPLE: With much attention on the European Union's ability to attract or unlock much-needed investment capital, accelerating its capital markets integration - or Savings and Investments Union - is seen as critical. Nicholas Veron at Bruegel proposes catalyzing this by hardening a central supervisory system to replace the current complex hybrid of a central agency - the European Securities and Markets Authority - alongside national supervisory bodies. "The way to reform it is by pooling all capital market supervisory authority into a transformed multicentric ESMA that would operate mostly through its own offices in EU countries, ensuring supervisory consistency and no preferential treatment for any single financial centre." * WEGOVY TEEN IMPACT: A fast-growing cohort of American teens who have chosen to take Novo Nordisk's weight-loss drug Wegovy, placing them at the forefront of a monumental shift in the treatment of childhood obesity. A Reuters special report by Chad Terhune and Robin Respaut found children who had taken Wegovy or a similar weight-loss drug, to speak with them about their experiences. The reporters spent more than a year closely following four teens and their families to examine in detail the impact of treatment. Chart of the day: U.S. stock markets have completed a remarkable 20% round trip since February to stand back at the brink of new records - with the S&P500 up more than 10% on this time last year. Today's events to watch * U.S. May personal consumption expenditures inflation gauge (0830EDT) University of Michigan's final June consumer survey (10:00 AM EDT) * New York Federal Reserve President John Williams and Cleveland Fed President Beth Hammack speak Opinions expressed are those of the author. They do not reflect the views of Reuters News, which, under the Trust Principles, is committed to integrity, independence, and freedom from bias. (By Mike Dolan; Editing by Anna Szymanski) Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
