Banc of America Ups Activision Outlook

Analyst Gary Cooper sees continued growth for the video game maker, partly from expected strong sales of Doom III next year

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.

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