Activision Blizzard (NASDAQ: ATVI) saw its profit climb in the second quarter, exceeding Street expectations. To gain insight into why the company reported as it did, investors might review the company's industry, financials, and commentary.
Earnings and Revenue:
Activision Blizzard topped analyst expectations with EPS of 29 cents/share versus the 5 cents/share estimate and revenue of $1.15 billion versus the estimate of $601 million. Revenue climbed 18.5% from the same period last year.
Activision Blizzard's revenue has now risen for two straight quarters. Revenue increased 10.8% to $1.45 billion in the previous quarter.
Income:
For the year, Activision Blizzard reported net income of 98 cents/share. The company trumped analyst projections of 74 cents by 32.4%. According to the reported number, the company's income rose 53% from last year's levels.
Conference Call:
The conference call for second quarter earnings can be accessed here.
Official Comment:
Chief Executive Officer Robert Kotick said, "Looking to the balance of the year, while we have numerous releases we believe our audiences will be especially excited by three key properties - Call of Duty: Modern Warfare three, our new online service Call of Duty Elite and Skylanders Spyro's Adventure - all of which are shaping up to be incredible."
Industry:
Activision Blizzard's industry, toys/game/hobby, is currently reporting price/earnings contraction of 3.5%. The company's EPS lags behind the industry average by 78.1%.
What to Do Next:
Now that you've gotten a round up of Activision Blizzard's latest numbers, you can make a better-informed decision about whether to buy, sell or hold those shares. Whatever you do, be sure to visit us before the company's next earnings release for a full preview.
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