NEW YORK (TheStreet) -- Shares of Activision Blizzard (ATVI) rose 2.76% to $20.50 in after-hours trading Tuesday after the gaming company reported third-quarter earnings that beat analysts' expectations.
The company posted adjusted earnings of 23 cents a share, an increase from 8 cents a share in the same period one year earlier. Analysts polled by Thomson Reuters had expected earnings of 13 cents a share.
Revenue soared 78% year-over-year to $1.17 billion from $657 million. Analysts polled by Thomson Reuters called for revenue of $1.005 billion.
Sales of the video game Destiny and an increase in World of Warcraft subscribers helped boost the quarterly results.
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 some important positives, 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 reasonable valuation levels, solid stock price performance, largely solid financial position with reasonable debt levels by most measures and expanding profit margins. We feel these strengths outweigh the fact that the company has had sub par growth in net income."
- You can view the full analysis from the report here: ATVI Ratings Report