Activision (ATVI) Continues to Face Tough Comps - Mizuho

Neil Doshi, Interactive Entertainment Analyst from Mizuho published a Activision Blizzard (NASDAQ; ATVI) earnings preview that states the company is likely to beat estimates slightly a slight guide up on new launches and intellectual property.

Doshi is below the street for revenue but above it for EPS at $946M and $0.16 vs. $952M and $0.15. Revenue is expected to decline 19% Y/Y due to the tough comp from Destiny in the year-ago quarter.

The publishing business is expected to be down 21% due to the tough Destiny comparison. Blizzard, is expected to account for $327 in revenue, down 16% YoY. World of Warcraft subs of 5.0m should be , down 11% QoQ and 32% YoY.

Launches in 4Q15 will be driven by the Call of Duty: Black Ops 3 (Nov. 6), Guitar Hero Live (Oct. 20), and Starcraft: Legacy of the Void (Nov. 10). Despite the rich lineup of titles, the year ago quarter included the launch of Skylanders and WoW: Warlords of Draenor.

Revenue and EPS estimates are $2,271m/$0.87 versus consensus of $2,245m/ $0.89. No changes to estimates or the Buy rating. The firm also maintained a $31 price target, which suggest downside from current market prices.

For an analyst ratings summary and ratings history on Activision Blizzard click here. For more ratings news on Activision Blizzard click here.

Shares of Activision Blizzard closed at $34.76 yesterday.

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