Activision Blizzard Inc Earnings Cheat Sheet: Beats Estimates

Activision Blizzard, Inc (NASDAQ:ATVI) reported net income above Wall Street’s expectations for the third quarter. Activision Blizzard is an online, personal computer (NYSE:PC), console, and handheld game publisher.

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Activision Blizzard, Inc Earnings Cheat Sheet for the Third Quarter

Results: Net income for Activision Blizzard, Inc rose to $148 million (13 cents per share) vs. $51 million (4 cents per share) in the same quarter a year earlier. This is a more than twofold rise from the year earlier quarter.

Revenue: Rose 1.2% to $754 million from the year earlier quarter.

Actual vs. Wall St. Expectations: ATVI reported adjusted net income of 7 cents per share. By that measure, the company beat the mean estimate of one cent per share. It beat the average revenue estimate of $558.4 million.

Quoting Management: Robert Kotick, Chief Executive Officer, Activision Blizzard, said, “Today, we launched Call of Duty: Modern Warfare three, which is perhaps the most anticipated video game in history and Call of Duty Elite, our new online service that makes playing together easier and more fun than ever before. Call of Duty Elite is a truly new form of entertainment combining Facebook-like social networking features and online television shows, offering the most accessible way to play Call of Duty games with other people.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the second quarter, by 8 cents in the first quarter, and by 2 cents in the fourth quarter of the last fiscal year.

Revenue has now gone up for three straight quarters. In the second quarter, revenue rose 18.5% to $1.15 billion while the figure rose 10.8% in the first quarter from the year earlier.

Looking Forward: Expectations for the company’s next quarter performance are more favorable than they were a month ago. The average estimate for the fourth quarter is now at 52 cents per share, up from 52 cents. In the last thirty days, the average estimate for the fiscal year has moved up from 73 cents per share to 74 cents.

Competitors to Watch: Electronic Arts Inc. (NASDAQ:ERTS), Microsoft Corporation (NASDAQ:MSFT), Take-Two Interactive Software, Inc. (NASDAQ:TTWO), THQ Inc. (NASDAQ:THQI), Nintendo Co., Ltd (NTDOY), Majesco Entertainment Co. (NASDAQ:COOL), KONAMI CORPORATION (NYSE:KNM), Sony Corporation (NYSE:SNE), Silverstar Holdings Ltd. (SSTRF), and Gravity Co., LTD. (NASDAQ:GRVY).

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(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)