Electronic Arts Stock Poised To Open At Over 1-Year Low After Lowering Outlook On Weak Football Game Franchise: Retail Keeps Faith

Electronic Arts, Inc. (EA) stock fell sharply after the video game software maker issued a negative pre-announcement, primarily due to weakness in its soccer video game franchise.

Redwood City, California-based Electronic Arts said it expects fiscal year 2025 third-quarter GAAP revenue of $1.883 billion and GAAP earnings per share (EPS) of $1.11. 

This marked a downward adjustment to the $1.875 billion to $2.025 billion revenue guidance the company issued when it released its second-quarter results in late October.

The weakness was blamed on a GlobalFootball slowdown, as the third quarter's early momentum did not last through the end.

GlobalFootball is sold under the  EA Sports FC branding after Electronic Arts ended its FIFT deal in 2022.

Electronic Arts lowered the fiscal year 2025 GlobalFootball outlook to a mid-single-digit decline. 

It also noted that Dragon Age engaged about 1.5 million players during the third quarter, about 50% lower than expected. DragonAge is a role-playing game for console such as PlayStation and Xbox.

As such, the company reduced its live services net bookings growth outlook to a mid-single-digit decline from the previously anticipated mid-single-digit growth.

GlobalFootball accounted for the bulk of the change, it added.

Electronic Arts also lowered its net booking guidance for the third quarter to about $2.215 billion and full year to $7 billion to $7.15 billion . 

Previously, the company estimated $2.40 billion to $2.55 billion and $7.50 billion to $7.80 billion, respectively. 

Andrew Wilson, CEO of Electronic Arts, said, ‘’This month, our teams delivered a comprehensive gameplay refresh in addition to our annual Team of the Year update in FC 25; positive player feedback and early results are encouraging. We remain confident in our long-term strategy and expect a return to growth in FY26, as we execute against our pipeline.”

CFO Stuart Canfield said the company expects to grow as it launches more of its iconic franchises.

The company is scheduled to report its third-quarter results after the market closes on Feb. 4. 

EA sentiment and message volume January 23, 2025, as of 9:39 am ET | Source: Stocktwits

On Stocktwits, retail sentiment toward Electronic Arts stock plummeted to ‘extremely bearish’ (3/100) from the ‘bullish’ mood that prevailed a day ago. Message volume perked up to  ‘extremely high’ levels.

The stock was among the top five trending ticker on the platform.

Some retail watchers of a stock called for a plunge toward $100.

Others whined about the company's franchises.

The stock fell 16.42% to $119.11 in early trading, marking the lowest level since Sept. 2023.

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Editor's note: This story was updated to reflect the change in sentiment reading and stock move.<