The Santa Monica-based company reported adjusted earnings of 38 cents per share on revenue of $1.21 billion. Analysts were expecting the company to report earnings of 23 cents per share on revenue of $1.16 billion. However, the stock is falling after the company said that it expects net revenue of $2.65 billion. Analysts are expecting the company to report revenue of $2.75 billion in the holiday quarter.
"Our third-quarter results exceeded our prior outlook for both revenue and earnings per share," said CEO Bobby Kotick. "Recent launches have enabled significant growth in the size of our audiences for our Call of Duty and World of Warcraft franchises."
In a note, Barclays said, "The 3Q strength was driven by Call of Duty (CoD) in-game revenue and the surge of subscriptions lead by World of Warcraft (WoW) Classic, which had the most q/q subscriber net adds in its 15-year franchise history."
So, how are big names, such as Activision Blizzard, maintaining engagement in its core titles?
Action Alerts PLUS analyst Zev Fima and Will Hershey, CEO of Roundhill Investments, weighed in.
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