Activision Top Estimates on Call of Duty; Shares RiseChristopher Palmeri
Activision Blizzard Inc. posted second-quarter sales and profit that beat analysts’ estimates on the strength of video-game franchises such as Call of Duty and Skylanders.
The shares advanced 10 percent to $28.23 at 9:56 a.m. in New York after reaching $28.92 for the biggest intraday gain since February 2014. Activision had gained 27 percent this year through Tuesday.
Profit excluding some items more than doubled to 13 cents a share, the Santa Monica, California-based company said Tuesday in a statement. Analysts had forecast 8 cents, the average of 19 estimates. Revenue climbed 15 percent to $759 million from a year earlier, beating estimates averaging $665.4 million.
“Our audience size and the total amount of time people spend with our franchises continue to grow,” Chief Executive Officer Bobby Kotick said in the statement.
Activision, like other video-game companies, has been diversifying beyond traditional game console discs in favor of monthly subscriptions and in-game purchases. Online revenue rose 27 percent in the quarter to a record $611 million. The company’s monthly active users climbed 35 percent.
This quarter, Activision forecasts profit 14 cents a share, excluding items, on par with analysts’ current estimates, and sales of $930 million, which is ahead of them.
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