Editors Note: Article has been updated to add Activision's full year earnings forecast increase to the previously reported current quarter forecast.
NEW YORK (TheStreet) -- Activision Blizzard (ATVI) shares are down 1.47% to $22.86 in pre-market trading on Thursday after the company released its first quarter earnings results after the closing bell yesterday and failed to meet analysts' current quarter guidance.
The Santa Monica, CA-based company reported first quarter earnings of $394 million, or 16 cents per diluted share, lower than the 19 cents per share it earned in the year ago period, but well ahead analysts' expectations of 7 cents per share. Revenue of $703 million for the quarter also beat $656.7 million expectations.
For the current quarter, the company expects to earn 7 cents per share on revenue of $650 million. Analysts on average are expecting the company to report earnings of 9 cents per share on revenue of $714.7 million.
For the full year, the company raised its guidance to earnings of $1.20 per share on $4.425 billion in revenue from its previous view of earnings of $1.15 per share on $4.4 billion in revenue.
TheStreet Ratings team rates ACTIVISION BLIZZARD INC as a Buy with a ratings score of A. TheStreet Ratings Team has this to say about their recommendation:
"We rate ACTIVISION BLIZZARD INC (ATVI) a BUY. This is based on the convergence of positive investment measures, which should help this stock outperform the majority of stocks that we rate. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance, impressive record of earnings per share growth, increase in net income and attractive valuation levels. We feel these strengths outweigh the fact that the company has had somewhat disappointing return on equity."