Activision Rises Slightly After Q3 Results, Big Call of Duty Sales (ATVI)
Activision's (NASDAQ: ATVI) Call of Duty: Ghosts has provided the company with another billion dollars in revenue.
This news came just before Activision announced its "better-than-expected" third-quarter results.
The firm, which is best known for the Call of Duty and Skylanders franchises -- and Guitar Hero in the past -- reported a Q3 EPS of $0.05 versus $0.04.
Earnings per share were down 67 percent from year-ago period, however.
Revenue came in at $657 million versus the Street estimate of $587.2 million. Sales were down 13 percent year-over-year.
"Our third-quarter results exceeded our expectations, and we are able to raise our outlook for 2013 net revenues and earnings per share. Robust continued engagement with our core franchises drove digital revenue, which constituted a majority of all revenue," Activision CEO Bobby Kotick said in a company release.
"This quarter demonstrates that games like Call of Duty and World of Warcraft engage and entertain our fans year round."
Kotick added that Activision is "thrilled" by the quality of its newest games, Call of Duty: Ghosts and Skylanders SWAP Force, and that the company is excited to show what can be done with them on next-generation hardware.
"We are also in the process of a beta launch for our first major free-to-play game, Hearthstone: Heroes of Warcraft," Kotick continued. "However, we continue to believe that the fourth quarter this year presents a unique and challenging landscape due to increased competition and uncertainties surrounding the console transition. We are confident in our ability to navigate these challenges successfully, particularly in light of the recent completion of our transaction with Vivendi and the focus and flexibility provided by our return to independence."
Activision is up less than one percent in after hours trading.
The company is up more than 50 percent year-to-date.
Disclosure: At the time of this writing, Louis Bedigian had no position in the equities mentioned in this report.
Louis Bedigian is the Senior Tech Analyst and Features Writer of Benzinga. You can reach him at louis(at)benzingapro(dot)com. Follow him @LouisBedigianBZ
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