Activision Blizzard (ATVI) Stock Gains in After-Hours Trading on Strong Q1 Results
NEW YORK (TheStreet) -- Activision Blizzard (ATVI) - Get Report stock is increasing by 4.01% to $36.31 in after-hours trading on Thursday, after the company reported better-than-expected 2016 first quarter financial results.
The Santa Monica, CA-based game developer reported earnings of 23 cents per share for the quarter, nearly double the 12 cents per share that Wall Street was expecting.
Revenue increased by 29% year over year to $908 million for the latest quarter, exceeding expectations of $813 million.
"This quarter we over-performed our non-GAAP February guidance by $108 million in revenue and $0.12 in earnings per share," CEO Bobby Kotick said in a statement. "We have a strong core business and more opportunities ahead of us than ever before, and talent continues to be our greatest asset."
Additionally, the company reported strong guidance for the 2016 second quarter. Activision Blizzard expects to report earnings of 38 cents per share on revenue of $1.38 billion for the next quarter. Wall Street is anticipating earnings of 34 cents per share on revenue of $1.33 billion.
Separately, Activision Blizzard has a "buy" rating and a letter grade of B at TheStreet Ratings because of the company's solid stock price performance, reasonable valuation levels, expanding profit margins and largely solid financial position with reasonable debt levels by most measures.
You can view the full analysis from the report here: ATVI
TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this article's author.
