Activision Blizzard Reports Q4 Results, 2015 Outlook Misses Expectations

Activision Blizzard, Inc. ATVI announced fourth quarter financial results Thursday.

Non-GAAP net revenues came in at $2.21 billion, below expectations of $2.24 billion. The company reposted $2.27 billion for the fourth quarter of 2013.

On a GAAP basis, the company’s net revenues were $1.58 billion, as compared with $1.52 billion for the fourth quarter of 2013.

Non-GAAP earnings per diluted share were $0.94, above estimates of $0.88 and the $0.79 reported in the year-ago period.

On a GAAP basis, the company’s earnings per diluted share were $0.49, more than double the earnings per diluted share of $0.22 for the prior year period.

Bobby Kotick, Chief Executive Officer of Activision Blizzard, said,“We have a growing portfolio of the very best franchises and great confidence in our future. Our Board has once again increased our dividend, authorized a $750 million share repurchase program and the repayment of another $250 million of our debt, and we have returned nearly $10 billion to our shareholders in dividends and repurchases since 2008.”

The company estimated that 2015 non-GAAP revenue would be $4.40 billion with EPS of $1.15.  Analysts expected non-GAAP EPS of $1.43 on revenue of $4.71 billion. The GAAP outlook for 2015 included revenue of $4.14 billion with EPS of $0.89.

For the first quarter of 2015, the company guided non-GAAP revenue at $640 million with EPS of $0.05. The GAAP guidance for the first quarter included revenue of $1.140 billion with EPS of 0.37.

Activision Blizzard, Inc. traded at $20.50 in the after hours session, down 6.05 percent.