Deals
Activision Plunges as Sales, Profit Miss Analysts' Estimates
- Skylanders, retooled Guitar Hero come up short for holidays
- Focus after King Digital purchase will be debt repayment
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Activision Blizzard Inc. reported fourth-quarter revenue and profit that fell short of analysts’ estimates, in part due to lower-than-expected purchases of its Skylanders and Guitar Hero video games. The stock plunged in extended trading.
Earnings excluding some items fell to 83 cents a share, the largest U.S. video-game maker said Thursday in a statement, less than the 86-cent average of analysts’ estimates compiled by Bloomberg. Sales, also on an adjusted basis, slumped 4.3 percent to $2.12 billion, below estimates of $2.2 billion. Activision expects to complete its $5.9 billion acquisition of King Digital Entertainment Plc shortly.