Oppenheimer Remains Bullish as Activision Blizzard (ATVI) Reports 3Q
Oppenheimer maintained an Outperform rating and $53.00 price target on Activision Blizzard (NASDAQ: ATVI) following the company's 3Q earnings report. Adjusted revenues and EPS of $1,630M and $0.52 beats consensus of $1,567M/$0.42. Activision revenues were down 36% Y/Y, Blizzard was up 97% Y/Y thanks to strong performance of Overwatch.
Analyst Andrew Uerkwitz commented, "ATVI F3Q16's adjusted revenues/EPS of $1,630M/$0.52 (GAAP revenues of $1,568M/$0.26) beats consensus of $1,567M/$0.42E and our $1,499M/$0.40E. Combined revenues and operating income from Activision and Blizzard reached 3Q and year-to-date records. Highlight of the quarter was again the strong engagement trends across core franchises. Management continues to execute well, resulting in increasing digital in-game purchases, faster-growing traction of eSports events, and franchise IP expansion into new markets. Mobile game (King) MAU saw another quarter of sequential decline, but King managed to maintain Y/Y growth in time spent per user and average revenue per paying user. Given management's strong execution and core franchise momentum, we reiterate our Outperform rating and $53 price target."
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Shares of Activision Blizzard closed at $43.37 yesterday.