NEW YORK (TheStreet) -- Shares of Activision Blizzard  (ATVI)  were lower in after-hours trading on Thursday as the company reported better-than-expected results for the 2016 third quarter but gave downbeat fourth quarter and full year guidance after today's market close. 

Activision expects to report earnings of 5 cents per share for the fourth quarter, lower than its prior outlook of 6 cents per share. Revenue is projected to be $1.86 billion, while analysts are looking for $2.48 billion.

The company sees earnings of 98 cents per share in 2016. Revenue is expected to be $6.45 billion, below Wall Street's forecasts of $6.57 billion. 

For the third quarter, the video game developer posted adjusted earnings of 49 cents per share, beating analysts' projected 42 cents per share. Revenue came in at $1.568 billion, which was slightly higher than analysts' estimated $1.566 billion. 

The company said its Blizzard unit had the biggest quarterly online player community in its history. The segment saw 42 million monthly active users (MAU), up 50% year-over-year. 

The boost in MAUs was driven in part by the launch of "World of Warcraft: Legion" which Activision said sold 3.3 million copies on day one. 

Separately, 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 articles's author. 

The team rates Activision as a Buy with a ratings score of B. The company's strengths can be seen in multiple areas, such as its robust revenue growth, largely solid financial position with reasonable debt levels by most measures, solid stock price performance, good cash flow from operations and expanding profit margins. The team feels its strengths outweigh the fact that the company has had sub par growth in net income.

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