Shares of Electronic Arts (NASDAQ:EA) tanked in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at $0.73, which beat estimates of $0.50 per share. Sales increased by 5% year-over-year, with revenue hitting $1.88 billion. This missed analysts’ expectations of $2.5 billion.
Elevate Your Investing Strategy:
- Take advantage of TipRanks Premium at 50% off! Unlock powerful investing tools, advanced data, and expert analyst insights to help you invest with confidence.
- Make smarter investment decisions with TipRanks' Smart Investor Picks, delivered to your inbox every week.
Looking forward, management now expects revenue and adjusted earnings per share for Q4 2023 to be in the ranges of $1.7 billion to $1.8 billion and $0.05 to $0.20, respectively. For reference, analysts were expecting $2.24 billion in revenue along with an EPS of $2.22.
Overall, Wall Street has a consensus price target of $148.25 on Electronic Arts stock, implying 15.21% upside potential, as indicated by the graphic above.