Activision Blizzard Is Ahead of the Game After Reporting Strong First-Quarter Earnings
Activision Blizzard reported fiscal 2014 first-quarter earnings results after the market closed today that topped Wall Street estimates. For the period ended March 31, Activision Blizzard generated non-generally accepted accounting principles earnings of $0.19 per share, up from $0.17 per share during the same period a year ago. That was $0.09 better than analyst estimates for earnings-per-share of $0.10 in the quarter.
Revenue also beat Wall Street's estimates. Activision Blizzard posted net revenue of $772 million on a non-GAAP basis, which was down from $804 million in the year-ago period but better than analysts' projections for quarterly revenue of $688.3 million. The video game maker said its strong quarterly results were driven by record digital sales in its core franchises such as World of Warcraft, as well as a successful launch of a new free-to-play game.
Looking ahead, Activision Blizzard chief executive Bobby Kotick said in a statement, "We have a strong product pipeline for the balance of the year, beginning with the September 9th planned launch of Destiny, which we believe could become our next billion dollar franchise and the largest new videogame IP launch in history." Shares of Activision Blizzard were up nearly 5% on the news in after-hours trading with the stock at $20.23 as of 4:30 p.m.
The article Activision Blizzard Is Ahead of the Game After Reporting Strong First-Quarter Earnings originally appeared on Fool.com.Tamara Rutter owns shares of Activision Blizzard. 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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