Activision (ATVI) Drops From Record High

NEW YORK (TheStreet) -- After reaching a lifetime high on Friday, Activision Blizzard (ATVI) has lost some momentum this week, dropping 2% to $19.25 by early afternoon.

After the bell Thursday, Activision reported sales higher than holiday season expectations thanks to the success of its Call of Duty franchise.

In its December-ended quarter, Activision generated $2.27 billion in sales. Analysts surveyed by Thomson Reuters had expected revenue of $2.22 billion. Per-share earnings of 79 cents were 6 cents over consensus.

Despite a full schedule of new releases, management guided first-quarter revenue of $675 million, below expectations of $687.4 million, and net income of 10 cents a share, a penny short of consensus. Full-year earnings of $1.26 a share is three cents under forecasts.

Must Read: Game On -- Activision Blizzard vs. Take-Two vs. EA

TheStreet Ratings team rates ACTIVISION BLIZZARD INC as a Buy with a ratings score of B. The team has this to say about their recommendation:

"We rate ACTIVISION BLIZZARD INC (ATVI) a BUY. This is driven by multiple strengths, which we believe should have a greater impact than any weaknesses, and should give investors a better performance opportunity than most stocks we cover. The company's strengths can be seen in multiple areas, such as its solid stock price performance, largely solid financial position with reasonable debt levels by most measures, notable return on equity and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."

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