Electronic Arts Inc. (NASDAQ:EA) Quarterly EPS Analysis


Quarterly Sales and EPS Roundup:

Electronic Arts Inc. (EA) reported sales (ttm) of 5.02 Billion, whereas, 21 number of analysts estimated the mean sale of 2064.27 million. The analysts estimated sales for the higher end at 2238 million and lower end at 1955 million while the year ago reported sale was 2063.75 million.

20 number of analysts have estimated the sales of the company for the quarter, analysts estimated mean sale target of 1091.32 million while high and low sale targets are estimated at 1125 million and 1075 million respectively.

Electronic Arts Inc. (EA) reported earning per shares for the quarter ending Jul 27 AMC, whereas, 22 number of analysts estimated the mean EPS at 2.41. The analysts estimated EPS for the higher end at 2.68 and lower end at 2.15 while the year ago reported earnings per share was 2.27.

The company has mean EPS estimate of 0.75 reported by 21 number of analyst for the quarter ending Current Qtr.(Sep2017). The analysts estimated mean EPS at 0.75 while the high and low EPS estimate stand at 0.78 and 0.7 respectively. EPS long term mean growth rate estimated by 22 analysts is at 5.05%, whereas, the high and low Long term growth rate estimated at 5.88 and 4.45.

Valuation Ratios of Electronic Arts Inc. (EA) versus the Industry and Sector:

Let’s have a look at some of the important valuation ratios of the Electronic Arts Inc. (EA). These ratios are important while doing valuation of the company or the shares of the company.

Electronic Arts Inc. (EA) currently has P/E (Price to Earnings) ratio of 31.12 while the company’s industry has 33.44 P/E and the sector P/E is 2002.76. Similarly, the company’s last 5 years high P/E ratio is 1145.73 and low P/E is 18.87, whereas, the industry’s and sector’s  high P/E for the past year is 72.42 and 25.1 respectively and low P/E ratio for the last 5 years is 21.49 for the industry and 10.28 for the Sector.

Beta is also an important valuation ratio for analyzing the stock of the company, EA has Beta of 0.67 while its industry and Sector’s beta remains at 0.78 and 1.29 respectively.

Price to Sale ratio of EA stands at 7.14 while Price to Book Ratio stands at 8. Its Price to Cash Flow ratio shows the value of 26.99, whereas, the industry and sector ratio of Price to Cash Flow ticked at 25.75 and 14.75 respectively.

5 Year Growth Rate Analysis:

Growth rates are very important while analyzing the long term growth and valuation of a certain company.

5 year sales growth rate is an important factor for valuation analysis, the 5 year sales growth of Electronic Arts Inc. (EA) stands at 3.18 while the industry’s and the sector’s growth for next 5 years ticked at 9.79 and 5.25 respectively. The company’s 5 year Earnings per share growth and Capital Spending growth remains at 68.58 and -6.49.

Electronic Arts Inc. (EA) Trading Statistics:

The company declined -1.83% and closed its last trading session at $116.11. The market capitalization of the company is at $35.78 Billion. The stock touched 52-week High of $120.25 on 07/27/17 and 52-week Low of $73.74 on 12/02/16. The stock currently has Weekly Volatility of 1.55% and Monthly Volatility of 1.96%. The Beta for the company stands at 0.67 and its Average True Range (ATR) shows a value of 2.29.