Activision Beats Estimates
Updated from 4:27 p.m. EDT
SAN FRANCISCO -- Video-game publisher Activision (ATVI) blew past analysts' expectations for the second quarter, thanks to sales of its hit titles Guitar Hero Encore and Transformers.
The company also guided results higher for the third quarter and full fiscal year.
Net income for the second quarter was $700,000, or break-even earnings per share, compared with a loss of $24.3 million, or 9 cents a share, the same quarter a year ago.Excluding the impact of expenses related to equity-based compensation, Activision earned 2 cents a share. Analysts were expecting a loss of a penny a share. Revenue rose 69% to $317.7 million. Analysts were expecting revenue of $268.9 million. Shares of Activision, which have climbed by more than 25% since mid-August, were recently off 42 cents, or 1.2%, to $22.48 in recent after-hours trading. For the third quarter, the company expects revenue of $1.05 billion and earnings of 51 cents a share, including the impact of equity-based compensation. Excluding charges, Activision expects to report earnings of 65 cents a share, higher than Street expectations of 50 cents a share on revenue of $896.9 million. For the fiscal year, Activision raised its revenue outlook to $2.07 billion and EPS to 55 cents. Excluding charges, the company expects earnings of 65 cents a share. Analysts were expecting revenue of $1.92 billion and earnings of 65 cents a share.
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