Coming Soon: Activision Blizzard Earnings

Seth Jayson, The Motley Fool
Updated

Activision Blizzard (NAS: ATVI) is expected to report Q2 earnings on Aug. 2. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Activision Blizzard's revenues will grow 18.7% and EPS will grow 20.0%.

The average estimate for revenue is $829.7 million. On the bottom line, the average EPS estimate is $0.12.


Revenue details
Last quarter, Activision Blizzard reported revenue of $587.0 million. GAAP reported sales were 19% lower than the prior-year quarter's $1.45 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.06. GAAP EPS of $0.33 for Q1 were 21% lower than the prior-year quarter's $0.42 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 69.8%, 100 basis points better than the prior-year quarter. Operating margin was 43.8%, 400 basis points worse than the prior-year quarter. Net margin was 32.8%, 190 basis points worse than the prior-year quarter.

Looking ahead
The full year's average estimate for revenue is $4.59 billion. The average EPS estimate is $0.96.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,984 members rating the stock outperform, and 219 members rating it underperform. Among 1,380 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,340 give Activision Blizzard a green thumbs-up, and 40 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Activision Blizzard is outperform, with an average price target of $15.87.

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The article Coming Soon: Activision Blizzard Earnings originally appeared on Fool.com.

Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Activision Blizzard. Motley Fool newsletter services recommend Activision Blizzard. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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