Activision Blizzard Earnings: ATVI Stock Ticks 1% Lower Even After Beating Q2 Estimates

Activision Blizzard (NASDAQ:ATVI) earnings for the video game company’s second quarter of 2020 have ATVI stock down after-hours Tuesday. That’s after reporting adjusted earnings per share of 81 cents, which is better than Wall Street’s estimate of 68 cents. The company’s revenue of $1.93 billion also beats out analysts’ estimate of $1.7 billion.

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Here’s what else is worth noting about the most recent Activision Blizzard earnings report.

  • Adjusted per-share earnings are 52.8% higher than the 53 cents from the same period of the year prior.
  • Revenue for the quarter is sitting up 37.9% from $1.4 billion in the second quarter of 2019.
  • Operating income of $749 million is a 122.9% increase year-over-year from $336 million.
  • The Activision Blizzard earnings report also includes a net income of $580 million.
  • That’s a 76.8% jump compared to the company’s net income of $328 million reported during the same time last year.

Bobby Kotick, CEO of Activision Blizzard, said this about the earnings results.

“Our record engagement resulted in greater revenue and earnings per share than previously forecast. While economic uncertainty could have an impact on our near-term results, the initiatives that drove our growth for the first half of the year should also provide the foundation for long-term growth.”

Activision Blizzard also includes a 2020 outlook in its current earnings report. It’s expecting an adjusted EPS of $2.87 on revenue of $7.275 billion for the year. Wall Street’s estimates are for an adjusted EPS of $2.79 on revenue of $7.22 billion during the period.

ATVI stock was down 1.2% after markets closed on Tuesday.

As of this writing, William White did not hold a position in any of the aforementioned securities.

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