Activision Blizzard Inc is set to report third-quarter 2017 results on Nov 2.
The company beat the Zacks Consensus Estimate in each of the last four quarters, with an average positive surprise of 39.81%. Last quarter, the company delivered a positive earnings surprise of 83.33%.
Notably, the stock has returned 80.8% year to date, substantially outperforming the 48.2% rally of the industry.
Let’s find out what Activision has to offer investors in this quarter.
Destiny 2 to Boost Sales
Launched on Sep 6 on Sony’s PlayStation 4 and Microsoft’s (MSFT - Free Report) Xbox One, Destiny 2 — the new first-person shooter game from Bungie — has received rave reviews from the likes of GameSpot, IGN and Eurogamer.
Although the game was launched in the later part of the quarter, we believe that pent-up demand along with enhanced features are likely to boost player base. This will definitely drive top-line growth in the soon-to-be-reported quarter.
Expanding Game Portfolio: Key Catalyst
We believe that rapidly-growing digital revenues and continued strength in titles like Call of Duty will boost top line. Moreover, expanding franchise portfolio that includes offerings like StarCraft, World of Warcraft, Diablo, Hearthstone and Heroes of the Storm are key drivers.
The acquisition of King Digital Entertainment has also worked in favor of the company. King Digital had 314 million Monthly Average Users (MAUs) at the end of the last quarter.
Activision is also benefiting from improving presence in the lucrative e-sports market. Overwatch is a growth driver in this regard.
Competition Intensifies
Nevertheless, higher adoption of free-to-play games and significant competition from the likes of Electronic Arts (EA - Free Report) , Take Two Interactive and Glu Mobile is a concern.
Why a Likely Positive Surprise?
Moreover, our proven model shows that Activision is likely to beat earnings due to the favorable combination of Zacks Rank #2 (Buy) and +5.80% Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) has a significantly higher chance of beating earnings estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Activision Blizzard Inc is set to report third-quarter 2017 results on Nov 2.
The company beat the Zacks Consensus Estimate in each of the last four quarters, with an average positive surprise of 39.81%. Last quarter, the company delivered a positive earnings surprise of 83.33%.
Notably, the stock has returned 80.8% year to date, substantially outperforming the 48.2% rally of the industry.
Let’s find out what Activision has to offer investors in this quarter.
Destiny 2 to Boost Sales
Launched on Sep 6 on Sony’s PlayStation 4 and Microsoft’s (MSFT - Free Report) Xbox One, Destiny 2 — the new first-person shooter game from Bungie — has received rave reviews from the likes of GameSpot, IGN and Eurogamer.
Although the game was launched in the later part of the quarter, we believe that pent-up demand along with enhanced features are likely to boost player base. This will definitely drive top-line growth in the soon-to-be-reported quarter.
Expanding Game Portfolio: Key Catalyst
We believe that rapidly-growing digital revenues and continued strength in titles like Call of Duty will boost top line. Moreover, expanding franchise portfolio that includes offerings like StarCraft, World of Warcraft, Diablo, Hearthstone and Heroes of the Storm are key drivers.
The acquisition of King Digital Entertainment has also worked in favor of the company. King Digital had 314 million Monthly Average Users (MAUs) at the end of the last quarter.
Activision is also benefiting from improving presence in the lucrative e-sports market. Overwatch is a growth driver in this regard.
Competition Intensifies
Nevertheless, higher adoption of free-to-play games and significant competition from the likes of Electronic Arts (EA - Free Report) , Take Two Interactive and Glu Mobile is a concern.
Why a Likely Positive Surprise?
Moreover, our proven model shows that Activision is likely to beat earnings due to the favorable combination of Zacks Rank #2 (Buy) and +5.80% Earnings ESP. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Note that stocks with a Zacks Rank #1 (Strong Buy), 2 or 3 (Hold) has a significantly higher chance of beating earnings estimates. You can see the complete list of today’s Zacks #1 Rank stocks here.
Conversely, Sell-rated stocks (Zacks Rank #4 or 5) should never be considered going into an earnings announcement.
Wall Street’s Next Amazon
Zacks EVP Kevin Matras believes this familiar stock has only just begun its climb to become one of the greatest investments of all time. It’s a once-in-a-generation opportunity to invest in pure genius.
Click for details >>
Zacks Names "Single Best Pick to Double"
From thousands of stocks, 5 Zacks experts each have chosen their favorite to skyrocket +100% or more in months to come. From those 5, Director of Research Sheraz Mian hand-picks one to have the most explosive upside of all.
It’s a little-known chemical company that’s up 65% over last year, yet still dirt cheap. With unrelenting demand, soaring 2022 earnings estimates, and $1.5 billion for repurchasing shares, retail investors could jump in at any time.
This company could rival or surpass other recent Zacks’ Stocks Set to Double like Boston Beer Company which shot up +143.0% in little more than 9 months and NVIDIA which boomed +175.9% in one year.
Free: See Our Top Stock and 4 Runners Up >>
Get the latest research report on MSFT - FREE
Get the latest research report on EA - FREE