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.
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.
