Activision (ATVI) Tops Q4 Views on Strong COD Numbers, Guidance May Give Investors Pause

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ATVI Hot Sheet

EPS Growth %: -53.8%

Financial Fact:
Subscription, licensing, and other revenues: 298M

Today's EPS Names:
VSNT, CIM, KH, More

Activision (Nasdaq: ATVI) shares are trading higher Thursday following its fourth-quarter report. Shares are up about 0.7 percent.

Non-GAAP revenue for Activision rose 11 percent to $2.41 billion, from $2.17 billion in the same period last year.

Activision swung to profit during the quarter, from a loss of $233 million last year to net gain of $99 million, or 8 cents per share, in the recent quarter. Excluding certain one-time items, earnings rose to 62 cents per share.

The Street was expecting earnings of 56 cents on revs of $2.20 billion.

"Blizzard Entertainment’s World of Warcraft maintained its leadership position as the #1 subscription-based MMORPG around the world and Activision Publishing’s Call of Duty: Modern Warfare 3 was the #1-selling game," commented CEO Bobby Kotick,. "Skylanders Spyro’s Adventure was the biggest new IP launch in Activision’s history and it is on track to become an important and sustainable franchise."

Looking ahead, Activision sees first-quarter 2012 EPS of 3 cents and revs of $525 million, versus consensus views calling for EPS of 14 cents and revs of $771.7 million. For 2012, Activision expects EPS of 94 cents and revs of $4.5 billion, nearly in-line with views for EPS of 96 cents nad revs of $4.55 billion.

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