On Feb. 7, Activision (NASDAQ:ATVI) released third-quarter earnings for the period ended Dec. 31.

  • Sales increased to $822.8 million, driven by holiday product lineup, improved market conditions, and strong sales and marketing execution.
  • The company raised its fiscal 2007 revenue guidance to $1.40 billion from $1.37 billion, while for fiscal 2008 it expects revenue of $1.6 billion.
  • Out of 584 investors in our community-intelligence service, Motley Fool CAPS, 560 think Activision will outperform the S&P 500. Let us know what you think by bringing your thoughts to CAPS!

(Figures in millions, except per-share data)

Income Statement Highlights

Q3 2007

Q3 2006

Change

Sales

$822.8

$816.2

0.8%

Net Profit

$124.8

$67.9

83.6%

EPS

$0.41

$0.23

78.3%

Diluted Shares

305.2

298.8

2.2%



Get back to basics with a look at the income statement.

Margin Checkup

Q3 2007

Q3 2006

Change*

Gross Margin

41.2%

39.0%

2.2

Operating Margin

20.3%

10.3%

10.0

Net Margin

15.2%

8.3%

6.8

*Expressed in percentage points.

Margins are the earnings engine. See how they work.

Balance Sheet Highlights

Assets

Q3 2007

Q3 2006

Change

Cash + ST Invest.

$805.2

$764.6

5.3%

Accounts Rec.

$454.7

$414.5

9.7%

Inventory

$85.8

$84.8

1.1%



Liabilities

Q3 2007

Q3 2006

Change

Accounts Payable

$193.9

$213.9

(9.4%)

Long-Term Debt

$0

$0

n/a



Learn the ways of the balance sheet.

Cash Flow Highlights
No data available.

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Related Companies:

  • Take-Two Interactive Software (NASDAQ:TTWO)
  • Electronic Arts (NASDAQ:ERTS)
  • THQ (NASDAQ:THQI)

Related Foolishness:

Activision and Electronic Arts are two powerhouses in the gaming industry, and both are Stock Advisor recommendations. Looking for other companies that lead their industries? Then click here for your free 30-day trial to Stock Advisor.

Fool by Numbers is designed to give you the raw earnings information in a timely fashion, putting all the numbers you need in one easy-to-read place. But at The Motley Fool, we believe numbers tell only part of the story, so check Fool.com for more of our in-depth discussion of what the numbers mean. This data has been provided by Netscribes. To provide feedback on this article, please click on the "feedback" button below.