Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!

‘Candy Crush,’ ‘Call Of Duty’ Drive Top-Line Beat For Activision

Courtesy of Benzinga.

'Candy Crush,' 'Call Of Duty' Drive Top-Line Beat For Activision

Activision Blizzard, Inc. (NASDAQ: ATVI) continued to surprise investors on Friday morning, trading down 3 percent after posting an unexpected second-quarter earnings beat on Thursday.

The video game maker reported EPS of 43 cents and $1.42 billion in sales compared to the 30-cent and $1.22 billion consensus estimates. Management also raised its fiscal 2017 guidance.

‘No New Products, No Problem’

The beat was a surprise since Activision hasn’t put out a new game recently. Credit Suisse analyst Stephen Ju said bookings growth was “incidentally reaccelerated” by microtransactions from “Overwatch,” “Call of Duty” and “Candy Crush.”

Ju reiterated an Outperform rating on the stock and raised his price target from $67 to $74. Ju also set an end-of-2018 target at $80.

“We note that the nature of the outperformance should be sustained into following quarters/years,” said Ju in a note. “Moreover these revenue streams arrive at high incremental margins.”

Those margins are expected to expand as products with finite production costs continue to earn revenue.

Ju now expects fiscal 2017 EPS to be $2.20 versus the company’s $2.08 guidance, and total sales of $7.1 billion, about $500 million above guidance.

Keep up with earnings season and analyst coverage in real-time with Benzinga Pro.

Related Links:

Activision Blizzard Posts Q2 Earnings Beat

Activision Blizzard Reports Q2 Earnings As E-Sports Continue To Grow

Image credit: Fun Oh, Flickr

Latest Ratings for ATVI

Date Firm Action From To
Aug 2017 Bank of America Upgrades Neutral Buy
Jul 2017 Needham Initiates Coverage On Buy
Apr 2017 Pacific Crest Reinstates Overweight Overweight

View More Analyst Ratings for ATVI


View the Latest Analyst Ratings

Posted-In: Call of Duty Candy Crush Credit Suisse Stephen JuAnalyst Color Price Target Reiteration Analyst Ratings Best of Benzinga


Do you know someone who would benefit from this information? We can send your friend a strictly confidential, one-time email telling them about this information. Your privacy and your friend's privacy is your business... no spam! Click here and tell a friend!





You must be logged in to make a comment.
You can sign up for a membership or get a FREE Daily News membership or log in

Sign up today for an exclusive discount along with our 30-day GUARANTEE — Love us or leave, with your money back! Click here to become a part of our growing community and learn how to stop gambling with your investments. We will teach you to BE THE HOUSE — Not the Gambler!

Click here to see some testimonials from our members!