Activision Blizzard Earnings Preview: Can This Streak Continue?

Activision Blizzard (NASDAQ:ATVI) will report earnings after markets close on Wednesday, May 8th. Activision Blizzard, Inc. publishes, develops, and distributes interactive entertainment software and peripheral products. The Company’s products cover diverse game categories, including action/adventure, action sports, racing, role playing, simulation, first-person action, music-based gaming and strategy.

Here is your Cheat Sheet to Activision Blizzard Earnings:

Earnings Expectations: Analysts expect earnings of $0.11 per share on revenues of $704.20 million. Currently, the company’s P/E ratio stands at 14.59.

Analyst Trends:

Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.11 to a profit $0.05. For the current year, the average estimate is a profit of $0.85, which is worse than the estimate ninety days ago.

Earnings Trends:

Here’s how Activision Blizzard has been performing on an annual basis:

Fiscal Year 2008 2009 2010 2011 2012
Revenue ($) in millions 2,898 4,279 4,447 4,755 4,856
Diluted EPS ($) 0.55 0.09 0.33 0.92 1.01

Next, our CHEAT SHEET investing framework asks us to drill down to the recent quarterly data:

Quarter Dec. 31, 2011 Mar. 31, 2012 Jun. 30, 2012 Sep. 30, 2012 Dec. 31, 2012
Revenue ($) in millions 1,407 1,172 1,075 841.00 1,768
Diluted EPS ($) 0.0865 0.33 0.16 0.20 0.3166

Past Performance:
Activision Blizzard has beat analyst estimates 4 times in the past four quarters. Shareholders could expect a boost if the company beats estimates.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at]