Activision Blizzard (Nasdaq: ATVI) is expected to report Q1 earnings around May 8. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Activision Blizzard's revenues will increase 20.1% and EPS will increase 83.3%.
The average estimate for revenue is $704.9 million. On the bottom line, the average EPS estimate is $0.11.
Revenue details
Last quarter, Activision Blizzard reported revenue of $1.77 billion. 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 details
Last quarter, non-GAAP EPS came in at $0.78. 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.
Recent performance
For the preceding quarter, gross margin was 60.0%, much better than the prior-year quarter. Operating margin was 27.4%, much better than the prior-year quarter. Net margin was 20.0%, much better than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $4.26 billion. The average EPS estimate is $0.86.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,902 members out of 7,130 rating the stock outperform, and 228 members rating it underperform. Among 1,497 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,464 give Activision Blizzard a green thumbs-up, and 33 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Activision Blizzard is buy, with an average price target of $15.08.
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