Activision Blizzard (ATVI) Q3 Sales Fall 27%, Profit Down 42%; 2011 Outlook Raised
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Financial Fact:
Total net revenues: 1.57B
Today's EPS Names:
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Financial Fact:
Total net revenues: 1.57B
Today's EPS Names:
BTTX, VAXX, ELYS, More
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Santa Monica-based Activision Blizzard (Nasdaq: ATVI) issued results for the quarter ended September 30, 2011 Tuesday afternoon. Despite better-than-expected third-quarter earnings and sales and raised 2011 guidance, the company's stock is trading about 3 percent lower in the post-market session.
While GAAP sales rose very modestly to $754 million, pro-forma revenue fell a sharp 27 percent from $857 million in the same quarter last year to $627 million. Activision Blizzard said adjusted net sales from digital channels hit a record $386 million during the quarter, representing about 62 percent of total sales.
Non-GAAP earnings totaled 7 cents per share, down nearly 42 percent from a profit of 12 cents per share in the third quarter of 2010.
Analysts on the Street had been expecting Activision Blizzard to report sales of $558.44 million and EPS of just 2 cents.
CEO Bob Kotick noted, "Today, we launched Call of Duty: Modern Warfare 3, which is perhaps the most anticipated video game in history and Call of Duty Elite, our new online service that makes playing together easier and more fun than ever before. Call of Duty Elite is a truly new form of entertainment combining Facebook-like social networking features and online television shows, offering the most accessible way to play Call of Duty games with other people.
"We continue to strengthen our position as the worldwide leader in interactive entertainment and the broadening of our audiences is confirmation that games are becoming as important as film and television as a mass-market form of entertainment," Kotick continued. "Our record nine-month results were driven the by the continued strength of our online-enabled franchises. Based on our third-quarter performance, stronger than expected consumer response to our new entertainment property, Skylanders: Spyro's Adventures, and Call of Duty: Modern Warfare 3, we are raising our full-year financial outlook and expect once again to deliver record operating margins and the highest earnings per share in our company's history."
The company expects to report fourth-quarter sales of about $2.17 billion, which compares to the current Street estimate of $2.1 billion, with EPS of about 55 cents. The analyst consensus is sitting at 53 cents per share.
Activision Blizzard boosted its CY11 sales outlook from approximately $4.05 billion to about $4.25 billion. The Street is looking for annual sales of $4.11 billion. Non-GAAP EPS are expected to rise 85 cents, up from prior guidance of about 77 cents, and compared to the Street estimate of 79 cents.
While GAAP sales rose very modestly to $754 million, pro-forma revenue fell a sharp 27 percent from $857 million in the same quarter last year to $627 million. Activision Blizzard said adjusted net sales from digital channels hit a record $386 million during the quarter, representing about 62 percent of total sales.
Non-GAAP earnings totaled 7 cents per share, down nearly 42 percent from a profit of 12 cents per share in the third quarter of 2010.
Analysts on the Street had been expecting Activision Blizzard to report sales of $558.44 million and EPS of just 2 cents.
CEO Bob Kotick noted, "Today, we launched Call of Duty: Modern Warfare 3, which is perhaps the most anticipated video game in history and Call of Duty Elite, our new online service that makes playing together easier and more fun than ever before. Call of Duty Elite is a truly new form of entertainment combining Facebook-like social networking features and online television shows, offering the most accessible way to play Call of Duty games with other people.
"We continue to strengthen our position as the worldwide leader in interactive entertainment and the broadening of our audiences is confirmation that games are becoming as important as film and television as a mass-market form of entertainment," Kotick continued. "Our record nine-month results were driven the by the continued strength of our online-enabled franchises. Based on our third-quarter performance, stronger than expected consumer response to our new entertainment property, Skylanders: Spyro's Adventures, and Call of Duty: Modern Warfare 3, we are raising our full-year financial outlook and expect once again to deliver record operating margins and the highest earnings per share in our company's history."
The company expects to report fourth-quarter sales of about $2.17 billion, which compares to the current Street estimate of $2.1 billion, with EPS of about 55 cents. The analyst consensus is sitting at 53 cents per share.
Activision Blizzard boosted its CY11 sales outlook from approximately $4.05 billion to about $4.25 billion. The Street is looking for annual sales of $4.11 billion. Non-GAAP EPS are expected to rise 85 cents, up from prior guidance of about 77 cents, and compared to the Street estimate of 79 cents.
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