Activision Releases Hearthstone, Hits 52-Week High - Analyst Blog


Shares of Activision Blizzard ( ATVI ) attained a new 52-week high, touching $20.66 on Mar 12, 2014. The bullish run reflects strong expectations from its newly-released game Hearthstone: Heroes of Warcraft.

The closing price of Activision on Mar 12 was $20.60, which represented a strong one-year return of about 37.5% and a year-to-date return of about 14.0%.

Activision delivered a positive earnings surprise of 225.1% over the past four quarters. This Zacks Rank #3 (Hold) stock has a market cap of $14.7 billion and long-term expected earnings growth rate of 15.3%.

Hearthstone - A Key Growth Driver

Activision recently released Hearthstone, which is currently available on Apple 's ( AAPL ) Mac and Microsoft ( MSFT ) PCs, with iPad support coming soon.

Heartstone: Heroes of Warcraft is a collectible card game that revolves around turn-based online one on one games between two opponents. Activision Blizzard has a track record of creating valuable franchises from scratch and the new game will boost its customer base going forward.

According to DFC Forecast, the video game industry is expected to generate revenues of about $78.0 billion by 2017, which underscores the prospects of video-game developers Activision and Electronic Arts ( EA ).

Estimate Revisions

The Zacks Consensus Estimate for the first quarter of 2014 remained steady at 7 cents over the past 30 days. For fiscal 2014, the estimate has remained unchanged at $1.20 over the same time frame. For fiscal 2015, the earnings estimate has remained unchanged at $1.35 per share over the same period.

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The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of The NASDAQ, Inc.

This article appears in: Investing , Business , Stocks

Referenced Stocks: AAPL , ATVI , EA , MSFT

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