Activision Blizzard Needs to Level Up After Q2
Activision Blizzard shares retreated after it reported lower quarterly results than a year ago, though the numbers were better than Wall Street expected.
When Activision Blizzard Inc. (NASDAQ: ATVI) reported its most recent quarterly results after the markets closed on Thursday, the video game firm said that it had $0.53 in earnings per share (EPS) and $1.40 billion in revenue. The consensus estimates had called for $0.26 in EPS and $1.19 billion in revenue, and in the same period of last year Activision said it had $0.62 in EPS and $1.64 billion in revenue.
During the latest quarter, Activision Blizzard had 327 million monthly active users and King had 258 million.
Activision delivered approximately $800 million of in-game net bookings in the second quarter. At the same time, King’s Candy Crush was the top-grossing franchise in the U.S. mobile app stores, a lead position it has held for the past two years.
Looking ahead to the fiscal third quarter, the company expects to see EPS of $0.20 and revenues of $1.105. Consensus estimate call for $0.40 in EPS and $1.36 billion in revenue for the quarter.
Bobby Kotick, CEO of Activision Blizzard, commented:
Our second quarter results exceeded our prior outlook for both revenue and earnings per share. In the first half of 2019 we have prioritized investments in our key franchises and, beginning in the second half of this year our audiences will have a chance to see and experience the initial results of these efforts.
Shares of Activision Blizzard traded down more than 3% at $47.63 early Friday. The 52-week range is $39.85 to $84.68, and the consensus price target is $52.76.
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Chris Lange is a financial and geopolitical writer with more than a decade of experience covering a myriad of topics. He has published thousands of articles for 24/7 Wall St., with past coverage focused heavily on stocks, IPOs, healthcare, defense, global affairs, and technology.
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