Activision Blizzard Boosts Profit Forecast

SAN FRANCISCO - Video-game publisher Activision Blizzard(ATVID Quote) is starting off on the right note.

The newly minted industry powerhouse said late Monday that first-quarter results will be higher than the company's earlier outlook -- and ahead of Wall Street's estimates.

Shares of Activision Blizzard rose $1.56, or 4.7%, to $34.50 in recent extended trading.

Revenue for the quarter is expected to be approximately $650 million, compared with $495.5 million a year ago, and above analysts' expectations of $ 516.1 million.

Activision's earlier outlook had pegged revenue at $500 million.

The company expects earnings between 16 cents and 18 cents a share. Excluding charges, Activision said EPS is likely to be in the range of 21 cents to 23 cents, compared with EPS of 11 cents a share, the year before, and higher than analysts' expectations of 14 cents.

Activision's earlier EPS outlook, excluding charges, was for 13 cents.

Activision's performance was largely driven by the North American launch of its Kung Fu Panda game early in the quarter coinciding with the release of its namesake movie, said the company.

Late in the quarter, Activision also launched Guitar Hero: On Tour for the Nintendo DS handheld console and Guitar Hero: Aerosmith game across multiple platforms including Microsoft's(MSFT Quote) Xbox 360, sales of which helped drive revenue.

(First-quarter results are on a standalone basis, from the period before the closing of Activision's merger with Vivendi Games).

Last week, Activision closed its mega-merger with Vivendi Games, first announced in December, and created the new combined entity, Activision Blizzard.