Activision Blizzard Earnings: ATVI Stock Up on EPS Beat, Weak Outlook

Activision Blizzard earnings (NASDAQ:ATVI) for its fourth quarter were above expectations, while the company’s revenue and its first-quarter guidance missed the mark in its quarterly report late Tuesday.

Activision Blizzard EarningsThe Santa Monica, Ca.-based gaming studio — which is responsible for games such as HearthstoneCall of Duty and Overwatch — said that it ended its fiscal 2018 with fourth-quarter earnings of $1.29 per share. The figure was a touch above the $1.28 per share that analysts were calling for, according to data compiled by Refinitiv.

Activision Blizzard added that its last period of 2018 raked in revenue of $2.84 billion, about $200 million below the $3.04 billion that the Wall Street consensus estimate called for, according to Refinitiv. For its first quarter of its 2019, the company projects earnings of 20 cents per share.

Analysts are guiding for first-quarter earnings of 46 cents per share, according to Refinitiv. Activision Blizzard sees its first-quarter revenue tallied up to $1.18 billion, which is also weaker than the $1.45 billion that the Wall Street consensus estimate called for.

The company added that it sees its fiscal 2019 as bringing in earnings of $2.10 per share on $6.30 billion in sales, below the Wall Street earnings guidance of $2.54 per share on $7.25 billion in revenue, per Refinitiv. It also calls for net bookings of $6.30 billion for the year, below the $7.26 billion of its fiscal 2018.

ATVI stock surged about 2% after the bell on the company’s earnings beat Tuesday. Shares had gained roughly 3.9% during regular trading hours.

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