Shares of video game specialist Activision Blizzard (NASDAQ:ATVI) jumped on Wednesday, rising as much as 9.1%. As of 10:57 a.m. EDT, however, the stock was up 5.5%.
The stock's gain follows the video game company's strong first-quarter results, which featured net bookings and adjusted earnings per share that crushed analysts' consensus forecasts for the period.
Activision announced first-quarter revenue of $1.79 billion. While this is down from $1.83 billion in the year-ago period, it was far higher than the $1.64 billion in revenue management had guided for. Further the company's net bookings of $1.52 billion soared from $1.26 billion in the first quarter of 2019 and blew past analysts' average forecast of $1.32 billion.
Activision's adjusted earnings per share of $0.76 was also significantly above analysts' consensus estimate for $0.38.
Activision's strong quarter and momentum so far in Q2 prompted management to raise its full-year outlook. Management said it now expects total 2020 revenue of $6.8 billion and adjusted earnings per share of $2.62.
"Our business exhibited accelerating momentum entering the second quarter from the dual tailwinds of strong execution in the Call of Duty franchise following last year's increased investment," management explained in the company's first-quarter earnings release, "and increased engagement as people turned to our interactive content as they sheltered at home."