EA Lowers Bookings Outlook for FY 2025 amid Game Challenges

Electronic Arts Inc. (EA) faces headwinds as it lowers its bookings outlook for FY 2025. Net revenue expectations for Q3 have been adjusted, reflecting challenges in growth expectations.

Date: 23-01-2025

AI Rating: 4

Revenue Growth and EPS

Electronic Arts Inc. (EA) has revised its net revenue expectations for the third quarter to approximately $1.883 billion, which indicates a significant focus on the company's revenue stream. The earnings per share (EPS) have been projected at approximately $1.11. This revision may negatively impact investor perception as they adjust their expectations based on these numbers.

Moreover, EA has lowered its full-year bookings outlook, now expecting net bookings of about $2.215 billion for Q3 and a revised guidance for fiscal year 2025 between $7.000 billion and $7.150 billion. The decrease in projections from initial expectations illustrates a shift from anticipated growth to a forecasted mid-single-digit decline in net bookings.

The company cited underperformance in key titles such as Dragon Age and EA SPORTS FC 25 as reasons for these revisions, indicating challenges in meeting previous bookings expectations. The shift from anticipated growth to a forecasted decline can provoke investor concern regarding overall business performance.

Conclusion

With EA's reduced outlook on both net revenue and overall bookings, combined with signs of struggling performance in certain game titles, investor sentiment may be challenged. However, EA remains optimistic about returning to growth in the following fiscal year, which could help stabilize any adverse reactions in the market. Investors will need to monitor EA's ability to execute against its long-term strategy and the performance of current titles to assess future stock performance.

Stocks: EA