) 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.
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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
) Mac and
) 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
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.