The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Activision Blizzard whiffed on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP earnings per share grew significantly.
Margins increased across the board.
Activision Blizzard notched revenue of $1.77 billion. The 22 analysts polled by S&P Capital IQ hoped for revenue of $2.44 billion on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $1.41 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.78. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.72 per share. GAAP EPS of $0.31 for Q4 were 288% higher than the prior-year quarter's $0.08 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 61.4%, 1,270 basis points better than the prior-year quarter. Operating margin was 27.4%, 2,470 basis points better than the prior-year quarter. Net margin was 20.0%, 1,300 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $710.4 million. On the bottom line, the average EPS estimate is $0.10.
Next year's average estimate for revenue is $4.56 billion. The average EPS estimate is $0.97.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,944 members out of 7,173 rating the stock outperform, and 229 members rating it underperform. Among 1,511 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,475 give Activision Blizzard a green thumbs-up, and 36 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Activision Blizzard is outperform, with an average price target of $15.08.
Looking for alternatives to Activision Blizzard? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Activision Blizzard to My Watchlist.