) reached a new 52-week high of $15.75 on Wednesday, May 15,
2013. The company recently announced better-than-expected
first-quarter results and provided a positive fiscal year 2013
The closing price of Activision on May 15 was $14.90,
representing a robust one-year return of about 20.36% and a
year-to-date return of about 36.07%. Average volume of shares
traded over the last three months stands at approximately
Activision has delivered an average positive earnings surprise
of 52.61% over the past four quarters. This Zacks Rank #3 (Hold)
company has a market cap of $16.58 billion and a long-term
expected earnings growth rate of 13.34%.
First Quarter Highlights
Activision reported better-than-expected first quarter results
driven by higher revenues and margin expansions. Revenues for the
quarter jumped 37.0% from the year-ago quarter to $804.0 million.
Reported revenues were significantly ahead of management's
guidance of $690 million and also surpassed the Zacks Consensus
Estimate of $706 million.
The company's earnings per share also improved from 6 cents to
17 cents on a year-over-year basis. Including stock-based
compensation of 2 cents, earnings came in at 15 cents per share,
handily beating the Zacks Consensus Estimate of 9 cents.
For the second quarter of 2013, Activision expects non-GAAP
earnings of 5 cents per share, higher than the Zacks Consensus
Estimate of 4 cents. Activision expects revenues of $590
Activision Blizzard revised its fiscal 2013 earnings outlook
from 80 cents to 82 cents. The Zacks Consensus Estimate is pegged
at 76 cents. The company also revised its revenue estimates for
fiscal 2013 from $4.17 billion to $4.25 billion.
In the last 30-day period, the Zacks Consensus Estimate
remained at 4 cents for the second quarter. During the period,
only one downward revision was noticed.
Activision's product portfolio will boost top-line growth over
the long term. Activision's recent release,
Call of Duty
's latest downloadable pack,
Black Ops II Uprising
) Xbox 360, will be a growth catalyst for the upcoming
However, continued softness in the video game industry,
limited presence in the mobile gaming segment, higher adoption of
free-to-play games are the near term headwinds for the
Other Stocks to Consider
Other stocks from the video game sector that are worth
) both of which carry a Zacks Rank #3 (Hold).
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