Activision Blizzard Earnings Up Next

Seth Jayson, The Motley Fool
Updated

Activision Blizzard (NAS: ATVI) is expected to report Q4 earnings on Feb. 7. 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 1.3% and EPS will grow 16.1%.

The average estimate for revenue is $2.44 billion. On the bottom line, the average EPS estimate is $0.72.


Revenue details
 Last quarter, Activision Blizzard logged revenue of $751.0 million. GAAP reported sales were 12% higher than the prior-year quarter's $754.0 million.

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 $0.15. GAAP EPS of $0.20 for Q3 were 54% higher than the prior-year quarter's $0.13 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 72.5%, 390 basis points better than the prior-year quarter. Operating margin was 27.0%, 510 basis points better than the prior-year quarter. Net margin was 26.9%, 730 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $4.80 billion. The average EPS estimate is $1.12.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,944 members out of 7,172 rating the stock outperform, and 228 members rating it underperform. Among 1,487 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,453 give Activision Blizzard a green thumbs-up, and 34 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 $15.67.

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The article Activision Blizzard Earnings Up Next 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 recommends Activision Blizzard. The Motley Fool owns shares of 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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