Shares of Electronic Arts Inc. (NASDAQ: EA) stayed green on Friday. The stock has dropped 7% over the past three months. The video game industry has been facing challenges as cautious customers reconsider their game purchases amid inflationary pressures. Against this backdrop, EA managed to grow its revenue and it expects this growth to continue for the full year. Here are a few points to keep in mind if you have an eye on this gaming company:
Electronic Arts saw growth in revenue and profits during its most recent quarter. The company generated revenues of $1.92 billion for the first quarter of 2024, which was up 9% from the same period a year ago. Net bookings increased 21% year-over-year to $1.6 billion. Net income grew 29% to $402 million and EPS rose 32% to $1.47 YoY.
Electronic Arts continues to see strength in its franchises. Apex Legends held its ground as one of the strongest in the industry with 18 million active monthly players and a retention rate of over 70% in the first quarter. Madden NFL saw higher engagement versus the year-ago period in Q1.
The company’s mobile business continued to outperform with gains from Star Wars: Galaxy of Heroes and The Sims FreePlay. Net bookings from mobile were up 3% YoY in Q1.
In Q1, full game net bookings jumped 143% YoY to $401 million, driven mainly by the release of Star Wars Jedi: Survivor. The company expects to generate long-term value from this title. Live services rose 4% in the first quarter, making up 75% of net bookings.
EA is investing in the development of new games and the expansion of its existing games which are expected to drive growth. Some of these investments include an Iron Man game, a re-imagination of Battlefield, the expansion of the Apex Legends universe, and its Black Panther project in collaboration with Walt Disney and Marvel.
Electronic Arts expects its second quarter 2024 results to benefit from momentum in its global football business and gains from the newly launched EA SPORTS FC. The company expects revenue for Q2 2024 to range between $1.82-1.92 billion and net bookings to range between $1.70-1.80 billion. EPS is estimated to be $0.72-0.89.
For the full year of 2024, EA expects both revenue and net bookings to range between $7.30-7.70 billion. EPS is expected to be approx. $3.42-3.92.
The post Electronic Arts (EA): A few points to keep in mind if you have an eye on this gaming company first appeared on AlphaStreet.
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