By Wallace Witkowski, MarketWatch
Adjusted EPS at 81 cents while Street expected 69 cents
Activision Blizzard Inc. shares rose in the extended session Tuesday after the videogame publisher topped Wall Street estimates for the quarter.
Activision Blizzard (ATVI) shares rose 1.6% after hours, following a 2% rise in the regular session to close at $86.45. Shares are up 45% for the year, while the S&P 500 index is up 2.3%.
The company reported second-quarter net income of $580 million, or 75 cents a share, compared with $328 million, or 43 cents a share, in the year-ago period.
Adjusted for items such as stock-based compensation, earnings were 81 cents a share, compared with 53 cents a share a year ago.
Revenue rose to $1.93 billion from $1.4 billion in the year-ago quarter.
Activision Blizzard (ATVI)reported that net bookings rose to $2.08 billion from $1.21 billion a year ago. Bookings are a common non-GAAP financial measure used by videogame companies to capture revenue from digital and physical sales.
Analysts surveyed by FactSet had forecast earnings of 69 cents a share on revenue of $1.7 billion and bookings of $1.69 billion.
"While economic uncertainty could have an impact on our near-term results, the initiatives that drove our growth for the first half of the year should also provide the foundation for long-term growth," said Bobby Kotick, Activision Blizzard chief executive, in a statement.
For the third quarter, Activision Blizzard expects adjusted earnings of 75 cents on revenue of $1.8 billion, while analysts had forecast earnings of 41 cents a share on revenue of $1.4 billion.
The company is the third major videogame publisher to report earnings this season, following reports by Take-Two Interactive Software Inc () and Electronic Arts Inc ( )
-Wallace Witkowski; 415-439-6400; AskNewswires@dowjones.com
(END) Dow Jones Newswires
August 04, 2020 16:28 ET (20:28 GMT)
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