Banc of America raised estimates on Activision (ATVI).
Analyst Gary Cooper says the results beat his and the Street's $0.10 earnings per share estimate. He notes the company's game "Medieval: Total War" drove PC revenue to $29 million, nearly $19 million above his estimate. He says days sales outstanding declined 23 days from the second quarter in fiscal 2002 to 33 days, inventory fell 26%, and net accounts receivable fell 29% despite a 21% increase in sales.
Cooper expresses confidence in continued growth, partly on back of expected strong sales of Doom III next year. He raised the $1.30 fiscal 2003 (March) earnings per share estimate to $1.33, and upped the $1.47 fiscal 2004 estimate to $1.52. He says estimates may prove conservative.