Electronic Arts (EA) is facing bearish investor sentiment ahead of its fiscal Q3 results amid a dwindling player base for Apex Legends and tepid sales for Dragon Age, which will keep the company from revising higher its fiscal 2025 guidance, Oppenheimer said Tuesday in a note.
The investment firm expects fiscal Q3 bookings of $2.51 billion and earnings per share of $3.43, largely in line with consensus estimates.
Oppenheimer trimmed its fiscal 2025 and 2026 bookings and EPS estimates for the video game developer, citing weakness in Apex Legends engagement, lower-than-expected full game sales of Dragon Age, and taking into account the release of Battlefield in Q4 of fiscal 2026.
The firm now projects bookings of $7.67 billion and EPS of $7.82 for fiscal 2025, down from its prior estimates of $7.7 billion and $7.86. For fiscal 2026, it now sees bookings of $8.09 billion and EPS of $8.53, down from $8.24 billion and $8.60.
Oppenheimer analysts said the key question is "how management will comment on FY26." Due to increased competition this year in the multiplayer shooter category and uncertainty in the release of Grand Theft Auto IV, the analysts said "the potential outcome for FY26 growth is wider than what we expected a quarter ago."
Oppenheimer maintained its outperform rating on the stock, and lowered the price target to $165 from $170.
EA shares were edging 0.5% higher in recent trading.
Price: 142.61, Change: +0.60, Percent Change: +0.43
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