Activision Blizzard Inc Earnings: Revenue Falls After Three Straight Increases

Activision Blizzard Inc (NASDAQ:ATVI) reported its results for the fourth quarter. Activision Blizzard is an online, personal computer, console, and handheld game publisher.

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Activision Blizzard Inc Earnings Cheat Sheet for the Fourth Quarter

Results: Reported a profit of $99 million (8 cents per diluted share) in the quarter. Activision Blizzard Inc had a net loss of $233 million or a loss 20 cents per share in the year earlier quarter.

Revenue: Fell to $2.41 billion from the year earlier quarter.

Actual vs. Wall St. Expectations: Activision Blizzard Inc reported adjusted net income of 62 cents per share. By that measure, the company beat the mean estimate of 55 cents per share. It fell short of the average revenue estimate of $2.2 billion.

Quoting Management: Bobby Kotick, Chief Executive Officer, Activision Blizzard, said, “As we continue to strengthen our leadership position in interactive entertainment, our proven management team and talented employees delivered another extraordinary year of outperformance. With better than expected net revenues, record earnings, record operating margins, and having generated nearly $1 billion in operating cash flow, Activision Blizzard continues to set the industry success bar.” Kotick continued, “Blizzard Entertainment’s World of Warcraft maintained its leadership position as the #1 subscription-based MMORPG around the world and Activision Publishing’s Call of Duty: Modern Warfare three was the #1-selling game.(three) Skylanders Spyro’s Adventure was the biggest new IP launch in Activision’s history and it is on track to become an important and sustainable franchise. We launched our online service, Call of Duty Elite, which is one of the fastest growing premium online services ever created.”

Key Stats:

The company has now topped analyst estimates for the last four quarters. It beat the mark by 5 cents in the third quarter, by 5 cents in the second quarter, and by 8 cents in the first quarter.

Looking Forward: Expectations for the company’s next quarter performance are higher than they were ninety days ago. Over the past three months, the average estimate for the first quarter of the next fiscal year has risen to 13 cents per share from 10 cents. Over the past three months, the average estimate for the fiscal year has climbed from 74 cents per to share to 80 cents.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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To contact the reporter on this story: Derek Hoffman at staff.writers@wallstcheatsheet.com

To contact the editor responsible for this story: Damien Hoffman at editors@wallstcheatsheet.com