Video game maker

Activision

(ATVI) - Get Report

was up 2.6% in early afternoon after raising fourth-quarter guidance Tuesday.

The company said it expects to earn 1 to 2 cents a share on revenue of $105 million to $110 million, vs. analysts' expectations of 1 cent earnings and $100 million in revenue.

For the 2001 fiscal year, Activision expects to earn 74 cents to 75 cents, compared to Street estimates of 74 cents. The company earned 79 cents in 2000.