Dow, ACN and PG Sliding; Activision (ATVI) Shining Bright
Activision Blizzard Inc (ATVI) surpassed quarterly expectations with a very positive report yesterday evening. CEO Bobby Kotick said popular game franchises, such as “Call of Duty” and “World of Warcraft,” contributed to the company’s 2010 success.
ATVI earned $381 million, or $.30 cents per share, up from $189 million, or $.14 cents a share, a year earlier. That’s over a 100% year-over-year quarterly earnings increase!
Revenue rose 33 percent to $1.31 billion. ATVI said revenue was driven primarily by sales of “Call of Duty: Modern Warfare 2” and “World of Warcraft.”
ATVI has four big upcoming releases on deck for the quarter, which include a complement to the movies “Shrek Forever After” and “Transformers: War For Cybertron.” This quarter also will also release two new games with massive potential: a racing game “Blur” and an action game called “Singularity.”
For the full year, Activision said it now expects earnings of $.72 cents per share compared with its previous forecast of $.70 cents per share. Thus, ATVI raised its profit outlook for the full year.
Later in the year, the company plans to launch new versions of its “Guitar Hero” and “DJ Hero” franchises, as well as new titles for “James Bond,” Spiderman” and “Tony Hawk.” The next “Call of Duty” title called “Black Ops” will come out in November.
Disclosure: No positions in the companies mentioned