Electronic Arts (EA, $96.72) revenue climbs on 'digital' strength
Video game maker Electronic Arts’ fiscal second quarter 2020 earnings declined from the year-ago quarter, and also missed some analysts’ expectations. Revenue, however, increased year-over-year.
The company’s revenues climbed +4.8% from the prior-year quarter to $1.35 billion. While Product revenues (42.1% of total revenues) fell - 8.8%, Service and other revenues (57.9% of total revenues) surged +17.6%.
Adjusted earnings came in at 78 cents per share (which excluded tax benefits worth $2.11). The company had reported earnings of 83 cents per share in the year-ago quarter. The Zacks Consensus Estimate for earnings was 85 cents.
EA’s digital revenues (68.4% of total revenues) increased +18.2% year over year. Packaged goods and other segment revenues (31.6% of total revenues) declined -15.8%.
Digital net bookings were +24% higher from the year-ago quarter.
Gross margin in the quarter expanded +250 basis points on a year-over-year basis to 70%.
For the third quarter of fiscal 2020, EA expects GAAP revenues of $1.510 billion, and net bookings of $1.940 billion.
Looking farther ahead, the company projects fiscal full-year 2020 GAAP revenues to be $5.410 billion and net bookings to be $5.125 billion. It expects digital net revenues of $4.230 billion. Packaged goods & other net revenues are anticipated to be $1.180 billion.
Management continues to expect The Sims 4 and Apex Legends to deliver net bookings of $300-$400 million each.
EA has forecasted earnings to be $9.57 per share for the year, including $5.74 of income tax benefits.
For the rest of 2019, the company has two major titles slated for release - Need for Speed Heat, which is scheduled to release on Nov. 8, and Star Wars Jedi: Fallen Order, which is expected to come out on Nov. 15.
EA in +0.58% Uptrend, rising for three consecutive days on July 16, 2026
Moving higher for three straight days is viewed as a bullish sign. Keep an eye on this stock for future growth. Considering data from situations where EA advanced for three days, in of 339 cases, the price rose further within the following month. The odds of a continued upward trend are .
Technical Analysis (Indicators)
Bullish Trend Analysis
The Momentum Indicator moved above the 0 level on June 23, 2026. You may want to consider a long position or call options on EA as a result. In of 85 past instances where the momentum indicator moved above 0, the stock continued to climb. The odds of a continued upward trend are .
The Moving Average Convergence Divergence (MACD) for EA just turned positive on June 23, 2026. Looking at past instances where EA's MACD turned positive, the stock continued to rise in of 44 cases over the following month. The odds of a continued upward trend are .
The Aroon Indicator entered an Uptrend today. In of 259 cases where EA Aroon's Indicator entered an Uptrend, the price rose further within the following month. The odds of a continued Uptrend are .
Bearish Trend Analysis
The RSI Indicator demonstrates that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
The Stochastic Oscillator demonstrated that the ticker has stayed in the overbought zone for 5 days. The longer the ticker stays in the overbought zone, the sooner a price pull-back is expected.
Following a 3-day decline, the stock is projected to fall further. Considering past instances where EA declined for three days, the price rose further in of 62 cases within the following month. The odds of a continued downward trend are .
EA broke above its upper Bollinger Band on July 15, 2026. This could be a sign that the stock is set to drop as the stock moves back below the upper band and toward the middle band. You may want to consider selling the stock or exploring put options.
Fundamental Analysis (Ratings)
The Tickeron PE Growth Rating for this company is (best 1 - 100 worst), pointing to outstanding earnings growth. The PE Growth rating is based on a comparative analysis of stock PE ratio increase over the last 12 months compared against S&P 500 index constituents.
The Tickeron Price Growth Rating for this company is (best 1 - 100 worst), indicating steady price growth. EA’s price grows at a higher rate over the last 12 months as compared to S&P 500 index constituents.
The Tickeron Profit vs. Risk Rating rating for this company is (best 1 - 100 worst), indicating well-balanced risk and returns. The average Profit vs. Risk Rating rating for the industry is 93, placing this stock slightly better than average.
The Tickeron Seasonality Score of (best 1 - 100 worst) indicates that the company is fair valued in the industry. The Tickeron Seasonality score describes the variance of predictable price changes around the same period every calendar year. These changes can be tied to a specific month, quarter, holiday or vacation period, as well as a meteorological or growing season.
The Tickeron SMR rating for this company is (best 1 - 100 worst), indicating strong sales and a profitable business model. SMR (Sales, Margin, Return on Equity) rating is based on comparative analysis of weighted Sales, Income Margin and Return on Equity values compared against S&P 500 index constituents. The weighted SMR value is a proprietary formula developed by Tickeron and represents an overall profitability measure for a stock.
The Tickeron Valuation Rating of (best 1 - 100 worst) indicates that the company is significantly overvalued in the industry. This rating compares market capitalization estimated by our proprietary formula with the current market capitalization. This rating is based on the following metrics, as compared to industry averages: P/B Ratio (7.704) is normal, around the industry mean (8.037). EA's P/E Ratio (59.204) is considerably higher than the industry average of (13.332). Projected Growth (PEG Ratio) (1.290) is also within normal values, averaging (2.041). Dividend Yield (0.004) settles around the average of (0.033) among similar stocks. EA's P/S Ratio (6.983) is slightly higher than the industry average of (2.453).
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General Information
a publisher of game software content and services
Industry ElectronicsAppliances
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