Activision Blizzard Shares Jump On Stock Buyback, Dividend Hike

Shares of Activision Blizzard Inc. soared in Thursday's extended session after the videogame company announced a $1 billion stock buyback plan and raised its quarterly dividend to 30 cents from 26 cents. However, it posted disappointing quarterly results. Activision reported its fourth-quarter earnings rose to $254 million, or 33 cents a share, versus $159 million, or 22 cents a share, a year earlier. On an adjusted basis, Activision would have earned 65 cents a share. Revenue grew to $2.01 billion from $1.35 billion. Analysts surveyed by FactSet had forecast earnings of 73 cents a share on revenue of $2.36 billion. In the first quarter, Activision projected adjusted earnings per share of 25 cents, below the 31 cents a share forecast by Wall Street. Activision shares surged 8.9% after hours.