Buy or Sell EA Stock Ahead of Its Upcoming Earnings?
Electronic Arts (NASDAQ:EA) is set to release its earnings on Tuesday, July 29, 2025. Analyzing the previous five years of data, EA stock tends to have positive one-day returns following earnings announcements, occurring in 55% of cases. The median one-day gain was 2.2%, and the largest increase in a single day reached 8.0%.
While the actual results in comparison to consensus estimates will be significant, recognizing these historical trends can offer a benefit for event-driven traders. There are two primary strategies to utilize this information: Pre-Earnings Positioning: Traders might opt to position themselves ahead of the earnings announcement, based on the historical probabilities.
Traders might opt to position themselves ahead of the earnings announcement, based on the historical probabilities. Post-Earnings Analysis: Conversely, traders can evaluate the relationship between immediate and medium-term returns after the earnings are released to guide their positioning.
Analysts' consensus estimates for the upcoming quarter predict earnings of $0.64 per share on sales of $1.23 billion. This marks a projected decline compared to the earnings from the same quarter last year of $1.01 per share on sales of $1.26 billion.
From a fundamental standpoint, Electronic Arts has a current market cap of approximately $39 billion. Over the past twelve months, the company achieved $7.5 billion in revenue , and was operationally profitable with $1.6 billion in operating profits and a net income of $1.1 billion .
That said, if you are looking for upside with lower volatility compared to individual stocks, the Trefis High Quality portfolio offers an alternative—having outperformed the S&P 500 and delivered returns surpassing 91% since its inception.
View earnings reaction history of all stocks Electronic Arts' Historical Odds Of Positive Post-Earnings Return
Here are some insights regarding one-day (1D) post-earnings returns: There are 20 earnings data points noted over the last five years, with 11 positive and 9 negative one-day (1D) returns recorded. In total, positive 1D returns were observed around 55% of the time.
and one-day (1D) returns recorded. In total, positive 1D returns were observed around 55% of the time. Interestingly, this percentage rises to 58% if we analyze data from the last 3 years instead of 5.
The median of the 11 positive returns is 2.2%, while the median of the 9 negative returns is -5.5%
Additional information for the observed 5-Day (5D) and 21-Day (21D) returns post earnings is compiled along with the statistics in the table shown below.
EA 1D, 5D, and 21D Post Earnings Return Trefis
A relatively lower-risk strategy (although not useful if the correlation is weak) is to understand the relationship between short-term and medium-term returns after earnings, identify a pair exhibiting the highest correlation, and implement the suitable trade. For instance, if 1D and 5D exhibit the greatest correlation, a trader can position themselves 'long' for the following 5 days if the 1D post-earnings return is positive. Here is some correlation data derived from 5-year and 3-year (more recent) history. Please note that the correlation 1D_5D refers to the correlation between 1D post-earnings returns and the following 5D returns.
EA Correlation Between 1D, 5D and 21D Historical Returns Trefis
Discover more about Trefis RV strategy that has outperformed its all-cap stocks benchmark (a combination of all 3: the S&P 500, S&P mid-cap, and Russell 2000), generating substantial returns for investors. In addition, if you're looking for upside with a smoother experience than investing in an individual stock like Electronic Arts, consider the High Quality portfolio , which has surpassed the S&P and achieved >91% returns since its inception.
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