Market Overview

Activision Blizzard's Earnings: A Preview


Activision Blizzard (NASDAQ: ATVI) announces its next round of earnings this Thursday, October 29. Here is Benzinga's look at Activision Blizzard's Q3 earnings report.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and especially earnings per share (EPS) are useful measures of a company's profitability. Total earnings, which is also referred to as net income, equals total revenue minus total expenses. EPS equals to net income divided by the number of shares outstanding.

Earnings And Revenue

Activision Blizzard EPS will likely be near $0.64 while revenue will be around $1.69 billion, according to analysts. In the same quarter last year, Activision Blizzard reported EPS of $0.32 on revenue of $1.21 billion.

Why Analyst Estimates And Earnings Surprises Are Important

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Thursday, quarterly profit would be up 100.0%. Revenue would be up 39.21% on a year-over-year basis. Here is how the Activision Blizzard's reported EPS has stacked up against analyst estimates in the past:

Quarter Q2 2020 Q1 2020 Q4 2020 Q3 2019
EPS Estimate 0.68 0.38 1.19 0.23
EPS Actual 0.97 0.58 1.23 0.32
Revenue Estimate 1.70 B 1.32 B 2.68 B 1.17 B
Revenue Actual 2.08 B 1.52 B 2.71 B 1.21 B

Stock Performance

Over the last 52-week period, shares are up 43.6%. Given that these returns are generally positive, long-term shareholders can be content going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Activision Blizzard is scheduled to hold the call at 16:30:00 ET and can be accessed here.


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Posted-In: Earnings