Latest news with #ElectronicArts
Yahoo
3 days ago
- Business
- Yahoo
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.
CNBC
6 days ago
- Business
- CNBC
Electronic Arts upgraded to buy as Roth Capital cites positive growth outlook
A faster growth outlook could translate into sizable gains ahead for Electronic Arts shares, Roth Capital wrote Tuesday. The research firm upgraded the video game company to buy from neutral and hiked its price target 6%, to $185 from $175, implying about 20% upside from Monday's close. "Sports remains a blue-chip cornerstone for the company's growth story, but a successful release of a new Battlefield game could materially change investor sentiment," analyst Eric Handler wrote on Tuesday. "We see EA at an important inflection point setting it up well for an elevated, multi-year growth trajectory. With multiple gaming projects like Battlefield slated for release, he projects that Electronic Arts could see double-digit earnings growth over the next three years. EA .SPX 3M mountain EA vs. S & P 500, 3-month EA shares have seen decent gains this year, rising almost 7% in the past three months and more than 5% year to date. The S & P 500 , meanwhile, has risen more than 6% in the past three months and 2% in 2025. "The most significant near-term key to share outperformance, in our view, is a successful launch (we think in the fall) for Battlefield, a franchise which has underdelivered with its last 2 games (Battlefield V in FY19, Battlefield 2042 in FY22)," the analyst wrote. "Our view is changes in Battlefield development over the last 3-4 years put the game in an excellent position to succeed." On top of the anticipated new Battlefield game, Handler pointed to the introduction of new variations of The Sims games as well as others, such as Skate and Star Wars: Zero Company, as growth drivers. Roth's 12-month price target is above the Street consensus of $168, as compiled by LSEG. That would deliver some 9% appreciation in the stock. EA rose more than 1% premarket on Tuesday.
The National
6 days ago
- Entertainment
- The National
Controversial game simulating US–Iran War sees 250% spike in activity
Battlefield 3, a video game that simulates a fictional war between the United States and Iran, was steeply discounted this week, even as real-world tension rises between the two countries. The game, developed by DICE studios and published by Electronic Arts, was originally released in 2011. It went on sale for 95 per cent off globally last Thursday, with the discount running for one week via the popular digital storefront Steam. While the game has often gone on discount since its release, the timing of the latest sale has raised eyebrows in the gaming community, with fans questioning the move. 'They saw an opportunity to make some money,' said one X user, with another adding: 'Life imitates art.' According to the independent database SteamDB, player counts have risen nearly 250 per cent since the day before the sale. In the game, Iran is presented as a country hijacked by extremists, leading to a US military invasion, with key sequences depicting combat across the country. The game garnered controversy upon release, with Iran banning its sale and strictly cracking down on the distribution of pirated copies. Iranian gamers also protested the release of the game, calling for an apology from its developers. There is no indication that the current discount was deliberately timed to current events, as the publisher is offering summer discounts on many of its library titles. 'It's probably a coincidence and not nefarious,' added another X user. The National has reached out to game publisher Electronic Arts for comment. The combat simulator Call of Duty series, published by Activision Blizzard, garnered controversy for its depiction of conflict in real-world countries. In 2019, the first Call of Duty: Modern Warfare, which imagined a conflict between the US and Russia received sizeable backlash for what users called 'anti-Russian propaganda'. The Call of Duty: Modern Warfare sequels have since avoided depicting real-world countries as a stage for war, instead setting conflicts in fictional destinations such as Urzikstan. This is not the first time that a video game has seen a spike in popularity in the wake of real-world happenings. In early 2020 in the early days of Covid-19, the pandemic-themed game Plague Inc shot to the top of the Apple App Store across the world, prompting China, one of the game's settings, to declare the release 'illegal' in February of that year. Ndemic Creations, the developers of the strategy simulation game in which players evolve a deadly pathogen to infect and eliminate the human population, issued a public statement urging people not to use the game as a source of real-world medical information. The firm later donated $250,000 to the World Health Organisation and the Coalition for Epidemic Preparedness Innovations towards relief efforts.
The National
7 days ago
- Entertainment
- The National
Controversial game simulating US–Iran War sees 95% price cut as real-world tension rises
Battlefield 3, a video game that simulates a fictional war between the United States and Iran, has been steeply discounted, even as real-world tension rises between the two countries. The game, developed by DICE studios and published by Electronic Arts, was originally released in 2011. It went on sale for 95 per cent off globally on Thursday via the popular digital storefront Steam. While the game has often gone on discount since its release, the timing of the latest sale has raised eyebrows in the gaming community, with fans questioning the move. 'They saw an opportunity to make some money,' said one X user, with another adding: 'Life imitates art.' According to the independent database SteamDB, player counts have risen nearly 250 per cent since the day before the sale. In the game, Iran is presented as a country hijacked by extremists, leading to a US military invasion, with key sequences depicting combat across the country. The game garnered controversy upon release, with Iran banning its sale and strictly cracking down on the distribution of pirated copies. Iranian gamers also protested the release of the game, calling for an apology from its developers. There is no indication that the current discount was deliberately timed to current events, as the publisher is offering summer discounts on many of its library titles. 'It's probably a coincidence and not nefarious,' added another X user. The National has reached out to game publisher Electronic Arts for comment. The combat simulator Call of Duty series, published by Activision Blizzard, garnered controversy for its depiction of conflict in real-world countries. In 2019, the first Call of Duty: Modern Warfare, which imagined a conflict between the US and Russia received sizeable backlash for what users called 'anti-Russian propaganda'. The Call of Duty: Modern Warfare sequels have since avoided depicting Iran as a stage for war, instead setting conflicts in fictional countries such as Urzikstan. This is not the first time that a video game has seen a spike in popularity in the wake of real-world happenings. In early 2020 in the early days of Covid-19, the pandemic-themed game Plague Inc shot to the top of the Apple App Store across the world, prompting China, one of the game's settings, to declare the release 'illegal' in February of that year. Ndemic Creations, the developers of the strategy simulation game in which players evolve a deadly pathogen to infect and eliminate the human population, issued a public statement urging people not to use the game as a source of real-world medical information. The firm later donated $250,000 to the World Health Organisation and the Coalition for Epidemic Preparedness Innovations towards relief efforts.
Yahoo
22-06-2025
- Business
- Yahoo
Should You Buy Roblox Stock After Its Surge to $100?
Roblox has doubled over the last few months, with a new experience driving strong engagement. The platform is growing much faster than those of leading game makers. The stock looks expensive, but Roblox could sustain double-digit revenue growth for several years. 10 stocks we like better than Roblox › Roblox (NYSE: RBLX) is one of the surprise breakout stocks of 2025. This top gaming stock has nearly doubled since the beginning of April and recently was sitting close to a 52-week high. The company has posted more than 20% quarterly revenue growth on a year-over-year basis for seven consecutive quarters. It seems well positioned to keep the momentum going based on the popularity of a new game, Grow a Garden, that is trending on the platform right now. Roblox is the best video game stock to hold for the long term. While its run this year has lifted the valuation to expensive-looking multiples of sales and free cash flow, the company's growth prospects make the stock a compelling buy. Roblox has been growing revenue much faster than the big video game companies like Nintendo, Electronic Arts, and Take-Two Interactive. Roblox also has a much different business model than these companies, which explains why it's growing faster. What makes Roblox such a powerful platform for growth is its user-created content strategy. This is a lower-risk strategy than that of big game publishers like Take-Two, which take on the risk of spending millions of dollars to make a game. Roblox pays earnings (developer exchange fees) to the creators with the most engaging content. This makes up around a quarter of the company's revenue. This isn't an expense as much as an investment in content production, similar to how Netflix spends billions on content every year and attracts a large audience. Over the last four quarters, Roblox spent $1 billion in developer exchange fees while generating $3.8 billion in revenue. More content attracts more users. Roblox's daily active users grew 26% year over year to 97.8 million in the first quarter. What's interesting is that the platform is starting to attract older kids. In the first quarter, 62% of daily active users were older than 13, and this percentage has been trending higher in recent years. This broadens Roblox's addressable market and increases its growth opportunity. The success of Grow a Garden, which currently has more than 2 million players spending time with the game every day, shows why Roblox could be a compelling growth stock to hold for the long term. Its large pool of content creators can release an engaging new experience like this at any time that attracts more players and drives upside to revenue. Management is targeting more than 20% compound annual growth in revenue through at least 2027. It believes it can capture 10% of the $180 billion annually spent on video games over the long term. One trend supporting favorable long-term prospects is the video game industry's historical growth with technological advancement. For example, Roblox could benefit from innovation in virtual reality, artificial intelligence, and continued improvement in graphics technology. The biggest risk for the stock in 2025 is its high valuation. The stock currently trades at a high price-to-sales ratio of 17.5. Even taking into account its growing free cash flow, the stock trades at a valuation of 76 times trailing free cash flow. At these high multiples, investors should be prepared for a pullback, especially after hitting a milestone $100 share price, which could serve as an excuse for traders on Wall Street to take profits. Any dip in the share price in the near term is a buying opportunity for long-term investors. Roblox still has other growth catalysts on the horizon, such as digital ads. It just announced a partnership with Alphabet's Google Ads to launch video ad formats on the platform, which bolsters Roblox's opportunity in the $700 billion digital ad market. Roblox brings together two powerful growth drivers on a single platform -- growing demand for interactive entertainment and social media. Many players like Roblox because they get to socially connect with others while engaging in fun experiences. This dynamic could carry the company a long way. Before you buy stock in Roblox, consider this: The Motley Fool Stock Advisor analyst team just identified what they believe are the for investors to buy now… and Roblox wasn't one of them. The 10 stocks that made the cut could produce monster returns in the coming years. Consider when Netflix made this list on December 17, 2004... if you invested $1,000 at the time of our recommendation, you'd have $664,089!* Or when Nvidia made this list on April 15, 2005... if you invested $1,000 at the time of our recommendation, you'd have $881,731!* Now, it's worth noting Stock Advisor's total average return is 994% — a market-crushing outperformance compared to 172% for the S&P 500. Don't miss out on the latest top 10 list, available when you join . See the 10 stocks » *Stock Advisor returns as of June 9, 2025 Suzanne Frey, an executive at Alphabet, is a member of The Motley Fool's board of directors. John Ballard has no position in any of the stocks mentioned. The Motley Fool has positions in and recommends Alphabet, Netflix, Roblox, and Take-Two Interactive Software. The Motley Fool recommends Electronic Arts and Nintendo. The Motley Fool has a disclosure policy. Should You Buy Roblox Stock After Its Surge to $100? was originally published by The Motley Fool
