Activision Blizzard Second Quarter Earnings Approaching

Activision Blizzard, Inc. (NASDAQ:ATVI) will unveil its latest earnings tomorrow, Thursday, August 2, 2012. Activision Blizzard is an online, personal computer, console, and handheld game publisher.

Activision Blizzard, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for profit of 10 cents per share, a rise of 11.1% from the company’s actual earnings for the same quarter a year ago. During the past three months, the average estimate has moved down from 14 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 10 cents during the last month. Analysts are projecting profit to rise by 7% versus last year to 92 cents.

Past Earnings Performance: Last quarter, the company beat estimates by 3 cents, coming in at net income of 4 cents a share versus the estimate of profit of one cent a share. It marked the fourth straight quarter of beating estimates.

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A Look Back: In the first quarter, profit fell 23.7% to $384 million (33 cents a share) from $503 million (42 cents a share) the year earlier, but exceeded analyst expectations. Revenue fell 19.1% to $1.17 billion from $1.45 billion.

Wall St. Revenue Expectations: Analysts predict a rise of 19% in revenue from the year-earlier quarter to $831.8 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.57 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of two-straight quarters of revenue declines. Revenue fell 1.5% in the fourth quarter of the last fiscal year and dropped again in the first quarter.

Stock Price Performance: Between May 2, 2012 and July 31, 2012, the stock price fell 88 cents (-6.9%), from $12.82 to $12.03. The stock price saw one of its best stretches over the last year between April 20, 2012 and April 30, 2012, when shares rose for seven straight days, increasing 5.5% (+68 cents) over that span. It saw one of its worst periods between July 18, 2012 and July 24, 2012 when shares fell for five straight days, dropping 7.2% (-90 cents) over that span.

Analyst Ratings: With 14 analysts rating the stock a buy, none rating it a sell and five rating the stock a hold, there are indications of a bullish stance by analysts.

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

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