Activision Blizzard reported a 4% year-over-year decline in adjusted revenue to $772 million from $804 million. The company also reported record digital sales, which made up 68% of total revenue. Adjusted income rose to 19 cents a share from 17 cents a share in the same period one year earlier.
Analysts had expected earnings of 10 cents a share on revenue of $688.3 million, according to Thomson Reuters I/B/E/S.
Activision Blizzard slightly increased its full-year adjusted earnings per share guidance for 2014 to $1.27 from its previous guidance of $1.26. This was just short of analysts' estimate of $1.29, according to Thomson Reuters I/B/E/S.
The stock was up 4.4% to $20.16 at 10:38 a.m.
Separately, TheStreet Ratings team rates ACTIVISION BLIZZARD INC as a "buy" with a ratings score of B. TheStreet Ratings Team has this to say about their recommendation:
"We rate ACTIVISION BLIZZARD INC (ATVI) a BUY. This is driven by several positive factors, 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, reasonable valuation levels, 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."