Activision Blizzard Reports Improved Q2 Earnings, Gives Full-year Guidance Below Expectations
Shares of video game developer Activision-Blizzard Inc. [s; ATVI] were down 1.5% after hours after the company gave full year guidance that was below Wall Street expectations. Activision reported net income of $243 million, or 32 cents per share for the second quarter, compared with $151 million, or 20 cents per share, during the same quarter a year ago. FactSet's consensus for per-share earnings was 30 cents. Activision said that redefined non-GAAP earnings were 55 cents per share, which it said included the net effect of revenue deferrals accounting treatment on certain online enabled products. Revenue for the quarter, which was impacted by the GAAP deferrals, was $1.63 billion, up from $1.57 billion. FactSet's revenue consensus was $1.23 billion. The company said it had 407 million monthly active users in the quarter. Activision said it expects revenue for the year to come in at $6.40 billion, below FactSet's consensus of $6.54 billion, and the company expects redefined non-GAAP per-share earnings to be $1.94, below FactSet's $2.02 consensus. Shares of Activision-Blizzard have gained more than 77% in the year to date, while the S&P 500 index is up more than 10%.
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