Activision Blizzard Beats Q2 Expectations, Shares Surge

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Shares of
Activision Blizzard, Inc.
ATVI
jumped over 6 percent in after-hours trading after the company reported better-than-expected earnings for the second quarter and lifted its full-year forecast. The Santa Monica, California-based company posted a quarterly net profit of $212 million, or $0.29 per share, versus a year-ago profit of $204 million, or $0.28 per share. On a non-GAAP basis, Activision's earnings rose to $0.13 per share from $0.06 per share. Its GAAP net revenue climbed to $1.04 billion from $970 million, while non-GAAP revenue rose to $759 million from $658 million. Analysts were expecting earnings of $0.08 per share on revenue of $665.53 million. The average estimate among 37 Estimize users was for earnings of $0.12 per share and revenue of $676.79 million. Its non-GAAP revenue from digital content climbed 27 percent year-over-year to $611 million, while non-GAAP revenue from retail channels declined 22 percent to $87 million in the quarter. During the quarter, Activision did not make any share repurchases. Bobby Kotick, Chief Executive Officer of Activision Blizzard, said, "Our strategic focus on expanding our franchise portfolio with captivating and original new intellectual property, innovating on new platforms, and expanding into new geographies is reflected in our results. We outperformed our Q2 targets and last year's results on revenues, digital growth, and earnings per share. These strong results and the excitement for our future games have driven us to raise our full-year outlook." It now projects full-year adjusted profit of $1.30 per share, versus prior forecast of $1.20 per share. The company now projects full-year adjusted revenue of $4.6 billion, versus its previous outlook of $4.425 billion. It expects Q3 earnings of $0.14 per share on revenue of $930 million. Activision shares climbed 6.70 percent to $27.39 in the after-hours trading session.
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Posted In: EarningsNewsGuidanceprofit
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