Electronic Arts Inc. ( EA ) is scheduled to report its third-quarter earnings after market close on Tuesday.

Earnings Estimates: Analysts are expecting revenue of $2.3 billion, down from $2.37 billion in the prior period, according to Benzinga Pro data.

The video game publisher enters the earnings report under increased scrutiny after BofA Securities downgraded the stock to Neutral from Buy on Jan. 23, cutting its price target to $130 from $170.

What Analysts Are Saying: The downgrade centered on concerns about EA’s ability to drive growth in the PC/Console gaming market, particularly regarding its flagship FC soccer franchise, which accounts for approximately 60% of its operating income.

Preliminary third-quarter revenue came in at $1.883 billion, falling significantly short of the $2.507 billion analysts had expected.

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The consensus among analysts remains cautiously optimistic, with an average price target of $151.96 based on 26 ratings, suggesting a potential upside from current levels of around $123.

Key Items to Watch: The Redwood City, California-based gaming giant faces questions about its FC franchise’s performance, with BofA noting a potential double-digit year-over-year decline in Live Services bookings. However, analysts note that recent weakness since November could be attributed to seasonal factors rather than long-term structural issues.

EA shares are trading well below their 52-week high of $168.50, with a Relative Strength Index of 31 indicating oversold conditions. The company maintains a market capitalization of $32.37 billion and a price-to-earnings ratio of 31.52.

Price Action: EA stock closed at $122.91 on Monday. In pre-market trading, the stock edged up 0.41% to $123.41. Year to date, EA has declined 15.76%, according to data from Benzinga Pro.

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Disclaimer: This content was partially produced with the help of AI tools and was reviewed and published by Benzinga editors.