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A Look at Electronic Arts’ Revenue and Earnings Growth

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Sales fell to $4.95 billion in fiscal 2019

Electronic Arts (EA) stock has gained 154.0% in the last five years, boosted by the company’s revenue and earnings growth. The company’s sales grew from $4.02 billion in fiscal 2014 to $4.39 billion in fiscal 2016, $4.84 billion in fiscal 2017, and $5.15 billion in fiscal 2018.

The stock fell ~26.5% last year as investors braced for a sales decline. In fiscal 2019, EA’s revenue fell 3.9% YoY (year-over-year) to $4.95 billion.

However, the company expects it could return to revenue growth in fiscal 2020, with its sales growing 8.6% YoY to $5.38 billion. Analysts expect EA’s sales to rise 6.6% in 2021 and 5.1% in 2022.

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Earnings growth

Analysts expect EA’s adjusted EPS to expand 7.1% from $4.25 in fiscal 2019 to $4.55 in fiscal 2020, and then 12.5% YoY to $5.12 in fiscal 2021. They expect the company’s EPS to grow 9.22% compounded annually in the next five years, lagging behind its EPS growth of 21.2% in the last five years.

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