Electronic Arts Inc has the potential to beat expectations when it reports fiscal fourth-quarter results on Tuesday thanks to strong demand for games including FIFA 23 and The Sims, according to a report from Trefis.
The Street expects revenue of $1.76 billion for the quarter, compared to $1.83 billion a year earlier and in line with its guidance of $1.70 billion to $1.80 billion. Adjusted earnings are expected to be $1.32 per share, within the company’s guided range of $1.20 to $1.40.
However, a focus on reducing advertising costs should help EA’s operating margins, Trefis noted.
“If the company reports upbeat Q4 results and provides an outlook for fiscal 2024 better than the street estimates, it is likely that the P/E multiple will be revised upward, resulting in higher levels for EA stock,” the report said.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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