2 Analysts Are Happy With Activision Blizzard Q2 Results Despite Revenue Decline

2 Analysts Are Happy With Activision Blizzard Q2 Results Despite Revenue Decline

Activision Blizzard, Inc. ATVI reported a decline in revenues and operating income for the second quarter.

KeyBanc Capital Markets On Activision Blizzard

Analyst Tyler Parker maintained an Overweight rating and a price target of $95.

Activision Blizzard, Inc. ATVI reported a decline in revenues and operating income for the second quarter.

KeyBanc Capital Markets On Activision Blizzard

Analyst Tyler Parker maintained an Overweight rating and a price target of $95.

“ATVI reported net bookings of $1.64B vs. our expectations of $1.52B and consensus expectations of $1.57B, which declined 15% y/y vs. a 28% decline last quarter,” Parker said in a note. He added, however, that net bookings “actually grew 11% sequentially.”

Both Activision and Blizzard performed better than expectations and the “sequential growth is notable in the current environment, though ATVI has many moving parts,” the analyst mentioned. He further mentioned that the improvement was “more ATVI-specific than anything.”

Check out other analyst stock ratings.

Raymond James On Activision Blizzard

Analyst Andrew Marok reiterated a Market Perform rating.

“Activision Blizzard reported 2Q22 results slightly ahead of expectations, mostly driven by a better-than-expected launch from Diablo Immortal,” Marok said in a note.

“The Activision segment remained soft, but the company did note that it intends to release a premium Call of Duty title in 2023, in contrast with some industry reports,” the analyst wrote. “King was ahead of expectations driven by continued strength in in-game spend, while advertising grew 20% despite increasing macro headwinds,” he added.

“We continue to see significant promise in the content slate coming in late 2022 and into 2023, though expect a subdued 3Q until new content starts to launch,” Marok further mentioned.

ATVI Price Action: Shares of Activision Blizzard had declined by 0.22% to $79.90 at the time of publication Tuesday.

Photo: Tarcil Tarcil from Flickr.

Posted In: Andrew MarokKeyBanc Capital MarketsRaymond JamesTyler ParkerEarningsNewsReiterationAnalyst Ratings