EA's Strong FY25 Start: Analysts Optimistic on Sports Titles but Cautious on Non-Sports Growth - Electronic Arts (NASDAQ:EA)

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Electronic Arts Inc. EA shares are trading higher on Wednesday. Yesterday, the company reported first-quarter net bookings of $1.26 billion, down from $1.58 billion in last year’s first quarter total of $1.58 billion. However, the net bookings came in ahead of company guidance of $1.25 billion. The results came amid an exciting earnings season. Here are some key analyst takeaways. Check out other analyst stock ratings. Goldman Sachs analyst Eric Sheridan reiterated a Neutral rating, raising the price forecast from $139 to $150. In the medium term, the analyst sees adding to the sports franchise strength across other titles in the coming quarters/years is likely key to returning to medium-term topline growth in a sustained manner in FY25-FY27. The analyst raised FY25 adjusted EPS guidance to $7.80 (from prior $7.55), and sees second-quarter adjusted EPS of $2.04 (from prior $2.00). Looking beyond FY25 & its catalysts, the analyst projects EA as a company with growth mostly driven by its core portfolio, mobile strategy, international expansion, M&A opportunities and organic investments, and long-term EBITDA margin expansion to be realized. JP Morgan analyst Cory A Carpenter maintained a Neutral rating, with a price forecast of $155. Per Carpenter, the FY25 guide is likely to prove conservative, and the analyst projects bookings of $7.6 billion in FY26. Overall, EA is off to a strong start in FY25, driven by its sports franchises. Still, the analyst’s lower conviction around non-sports titles (Apex, Sims) keeps on the sidelines given that much of the College Football upside is priced into shares trading at 17.5x FY26 adjusted EPS, Carpenter adds. Also Read: Asia Markets Up, Europe Opens Higher, Crude Advances 2.6% – Global Markets Today While US Slept Benchmark analyst Mike Hickey reiterated the Buy rating, raising the forecast to $163. Hickey remains optimistic about the growth potential of EA SPORTS franchise portfolio, which will be a key driver in the second quarter. However, the analyst remains cautious about potential delays with Dragon Age and are concerned that Apex Legends may continue to suffer growth declines. Wedbush analyst Nick McKay maintained the Outperform rating, raising the forecast to $170 from $162. The analyst maintained the FY25 estimate for net bookings of $7.600 billion, raising the EPS estimate to $7.70 from $7.60. Oppenheimer analyst Martin Yang reiterated the Outperform rating, with a forecast of $170. Aside from a stronger-than-expected CFB debut, Yang sees uncertainties on Madden cannibalization, FC 25 sales, Apex Legends. BMO Capital Markets analyst Brian J. Pitz maintained the Outperform rating with a forecast of $154. Per the analyst, investors will now focus on the potential cannibalization of the core Madden franchise. Pitz highlighted Madden’s record FY24 bookings and key contributions to F1Q live services outperformance. Additionally, the strong adoption of the CF 25 MVP Edition, which includes a deluxe version of CF 25 and Madden 25, beat management expectations, signaling that the two franchises could coexist, the analyst adds. Stifel analyst Drew E. Crum reiterated a Buy rating, raising the forecast to $167 from $165. Crum also sees potential cannibalization on Madden NFL 25 as a swing factor that may be difficult to measure prior to the game’s release date (August 16th). Plus EA rarely makes revisions to its annual outlook with the first quarter, the analyst added. Price Action: EA Shares are trading higher by 2.02% to $152.13 at last check Wednesday. Photo via Shutterstock Read Next: