Activision Blizzard, Inc.’s (ATVI) Fourth-Quarter Review
February 11, 2010 12:42 PM
Cowen and Company (NASDQ: COWN) has released an update on Activision Blizzard, Inc. (NASDAQ: ATVI). The company has reported results for the fourth-quarter.
Activision Blizzard reported non-GAAP EPS of $0.49 for the fourth-quarter. The company had revenue of $2.5 billion. The company’s results for the fourth-quarter came in well ahead of the consensus, Cowen’s estimates, and its own guidance. According to Cowen, the upside was mainly driven by strong sales of Call of Duty: Modern Warfare 2.
The company also issued guidance for 2010. The company expects non-GAAP EPS of $0.70 in 2010, which is below Cowen’s estimate of $0.74.
The company has announced a share buyback program. The company expects to buy back shares worth $1 billion, which will be on top of the $1.25 billion worth of shares already bought back. The company has also announced a dividend of $0.15.
According to Cowen, these actions are shareholder friendly, and should enhance the value of shares of the company.
The company’s next major title is expected to commence beta testing by end of February, according to Cowen. Cowen and Company has an Outperform (1) rating for Activision Blizzard, Inc.
