Post-Earnings Coverage - Activision Blizzard

LONDON, November 26, 2014 /PRNewswire/ --

Investor-Edge.com has issued free earnings coverage on Activision Blizzard Inc. (NASDAQ: ATVI). On November 04, 2014, the company reported its financial results for Q3 FY14 (period ended September 30, 2014). Click on www.investor-edge.com/FreeReports to read our free earnings review on Activision Blizzard Inc. (Activision Blizzard). During Q3 FY14, Activision Blizzard's non-GAAP net revenues increased to a record $1.17 billion and its non-GAAP EPS also reached a record $0.23 in Q3 FY14, up from $0.08 per share in Q3 FY13. Our free coverage report can be accessed at:

www.investor-edge.com/register

Earnings Overview 

For Q3 FY14, Activision Blizzard reported GAAP net revenues of $753 million compared to $691 million in Q3 FY13. The company's reported revenues fell short of Bloomberg analysts' forecasts of $1,007 million. The company's Q3 FY14 GAAP net revenues from digital online channels stood at $504 million, representing a record 67% of the company's total revenues. On a non-GAAP basis, net revenues from digital online channels stood at $505 million, representing 43% of the company's total revenues. The free research on ATVI can be downloaded as in PDF format at:

www.Investor-Edge.com/ATVIFreeReport

Bobby Kotick, CEO of Activision Blizzard, stated that the company's record Q3 FY14 results were driven by Destiny®, the biggest new videogame franchise launch of all time, as well as strong sales from Blizzard Entertainment's Diablo® III: Reaper of Souls™ - Ultimate Evil Edition™, Hearthstone®: Heroes of Warcraft™, which now has over 20 million registered players, and World of Warcraft®, which saw a quarterly increase in subscribers to 7.4 million in anticipation of the upcoming Warlords of Draenor™ release.

Activision Blizzard's total cost and expenses during the reported quarter increased to $745 million, from $621 million in Q3 FY13. The company's GAAP operating income fell significantly to $8 million in Q3 FY14 from $70 million in Q3 FY13. During Q3 FY14, Activision reported a GAAP loss of $23 million, or $0.03 per diluted share, which compares to GAAP earnings of $56 million, or $0.05 per diluted share, in Q3 FY13. Analysts from Bloomberg had expected the company to report GAAP net loss of $67 million or $0.06 per share. Sign up and read the free analyst's notes on ATVI at:

www.Investor-Edge.com/ATVI-26112014

Mr. Kotick said that Activision Blizzard has some of the most important franchises in entertainment and the company expects to continue growing its product portfolio in 2015 with two additional franchises -- Call of Duty Online, which the company expects will enter an unlimited beta test, including virtual item sales, in China during the first quarter, and Blizzard Entertainment's Heroes of the Storm™. He further stated that looking ahead, the company has more opportunities than ever before to fuel its growth by creating great content using new platforms and business models while also expanding into new geographies.

Based on its Q3 FY14 results, Activision Blizzard raised its outlook for Q4 FY14 and for FY14. For Q4 FY14, the company expects GAAP and non-GAAP net revenues of $1,492 million and $2,200 million, respectively. On GAAP and non-GAAP basis, the company is expecting Q4 FY14 EPS of $0.28 and $0.86, respectively. Further, for FY14, Activision Blizzard projects GAAP and non-GAAP net revenues of $4,325 million and 4,800 million, respectively. The company is expecting GAAP EPS of $0.91 in FY14, while non-GAAP EPS is expected at $1.35. Visit Investor-Edge and access the latest research on ATVI at:

www.Investor-Edge.com/ATVIEarningsCoverage

Stock Performance  

On the day following the earnings release, November 05, 2014, Activision Blizzard's stock surged 4.41%, ending the session at $20.83. The stock has witnessed a mixed momentum since then. On the last close, Tuesday, November 25, 2014, the stock finished at $21.73, up 2.02%. The company's shares oscillated between $21.23 and $21.86 during the session. A total of 11.21 million shares were traded, which was above its three months average volume of 9.00 million shares. Over the previous three trading sessions and last one month, the company's shares have gained 2.94% and 13.35%, respectively. Additionally, the stock has surged 21.87% since from the beginning of 2014. Shares in Activision Blizzard closed above their 50-day and 200-day moving averages of $20.21 and $21.05, respectively. Furthermore, the stock traded at a PE ratio of 24.90 and has a Relative Strength Index (RSI) of 61.46.

Sneak Peek to Corporate Insider Trading 

In the last one month, there were 7 insider selling transactions made by 4 individuals. Between November 1, 2014 and November 20, 2014, a total of 108,139 shares have been disposed at an average price of $20.74 per share, worth $2.24 million. On November 01, 2014, Brian G. Kelly, Chairman of the Board of Directors at Activision Blizzard, sold 9,872 shares at $19.95 per share. Between November 08 and November 14, 2014, Michael Morhaime, CEO at Blizzard Entertainment, a subsidiary of Activision Blizzard, disposed 37,981 shares at an average price of $20.48 per share. On November 10, 2014, Stephen G. Wereb, Chief Accounting Officer at Activision Blizzard, sold 7,701 shares at $20.92 per share. Moreover, on November 20, 2014, Eric Hirshberg, President and CEO at Activision Publishing, a subsidiary of Activision Blizzard, disposed 52,585 shares at $21.05 per share. Complimentary in-depth research on ATVI is available at:

www.Investor-Edge.com/ATVIInsiderTrading

About Investor-Edge.com 

At Investor-Edge, we provide our members with a simple and reliable way to leverage our economy of scale. Most investors do not have time to track all publicly traded companies, much less perform an in-depth review and analysis of the complexities contained in each situation. That's where Investor-Edge comes in. We provide a single unified platform for investors' to hear about what matters. Situation alerts, moving events, and upcoming opportunities.

===============

EDITOR'S NOTES:

===============

1. This is not company news. We are an independent source and our views do not reflect the companies mentioned.

2. Information in this release is produced on a best efforts basis by RohitTuli, a CFA charterholder. The content is then further fact checked and reviewed by an outsourced research provider. However, we are only human and are prone to make mistakes. If you notice any errors or omissions, please notify us below.

3. This information is submitted as a net-positive to companies mentioned, to increase awareness for mentioned companies to our subscriber base and the investing public.

4. If you wish to have your company covered in more detail by our team, or wish to learn more about our services, please contact us at pubco [at] www.investor-edge.com.

5. For any urgent concerns or inquiries, please contact us at compliance [at] www.investor-edge.com.

6. Are you a public company? Would you like to see similar coverage on your company? Send us a full investors' package to research [at] www.investor-edge.com for consideration.

COMPLIANCE PROCEDURE

Content is researched, written and reviewed on a best-effort basis. This document, article or report is prepared and authored by Investor-Edge, represented by RohitTuli, CFA. An outsourced research services provider has only reviewed the information provided by Investor-Edge in this article or report according to the procedures outlined by Investor-Edge. Investor-Edge is not entitled to veto or interfere in the application of such procedures by the outsourced provider to the articles, documents or reports, as the case may be.

NOT FINANCIAL ADVICE

Investor-Edge makes no warranty, expressed or implied, as to the accuracy or completeness or fitness for a purpose (investment or otherwise), of the information provided in this document. This information is not to be construed as personal financial advice. Readers are encouraged to consult their personal financial advisor before making any decisions to buy, sell or hold any securities mentioned herein.

NO WARRANTY OR LIABILITY ASSUMED

Investor-Edge is not responsible for any error which may be occasioned at the time of printing of this document or any error, mistake or shortcoming. No liability is accepted by Investor-Edge whatsoever for any direct, indirect or consequential loss arising from the use of this document. Investor-Edge expressly disclaims any fiduciary responsibility or liability for any consequences, financial or otherwise arising from any reliance placed on the information in this document. Investor-Edge does not (1) guarantee the accuracy, timeliness, completeness or correct sequencing of the information, or (2) warrant any results from use of the information. The included information is subject to change without notice.

CFA® and Chartered Financial Analyst® are registered trademarks owned by CFA Institute.

SOURCE Investor-Edge

WANT YOUR COMPANY'S NEWS FEATURED ON PRNEWSWIRE.COM?

440k+
Newsrooms &
Influencers

9k+
Digital Media
Outlets

270k+
Journalists
Opted In

GET STARTED