Electronic Arts (NASDAQ:EA) is a California-based company that develops, markets, publishes, and distributes video games and other gaming-related content. Its shares have dropped 6.1% in 2022 as of mid-afternoon trading on April 25. The stock is down 11% year over year.
The company released its third quarter fiscal 2022 results on February 1. Total net revenues were reported at $1.78 billion in Q3 FY2022 – up from $1.67 billion in the previous year. Meanwhile, net bookings for the trailing twelve months increased 24% to $7.25 billion. Moreover, the company reported that its players spent 20% more time on its games than in the prior year. Operating cash flow rose to $1.53 billion compared to $1.12 billion in the third quarter of fiscal 2021.
Investors also got a look at EA’s outlook for the fourth quarter of fiscal 2022. It projects net revenues of about $1.75 billion and net income of $130 million. Meanwhile, net bookings are set to jump to $1.76 billion.
In the year-to-date period, EA delivered gross profit of $3.72 billion – up from $3.10 billion in the first three months of fiscal 2021. Shares of this gaming focused stock are trading in favourable value territory compared to its industry peers. It is geared up for strong earnings growth going forward. EA stock looks like a solid buy at the time of this writing. However, investors should be mindful of broader turbulence that could negatively impact its price in the spring.
Related Stories
