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Activision (ATVI) to Report Q1 Earnings: What's in Store?
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Activision Blizzard is set to report first-quarter 2022 results on Apr 25.
The Zacks Consensus Estimate for revenues is pegged at $1.80 billion, indicating a decline of 12.86% from the year-ago quarter’s reported figure.
The consensus mark for first-quarter earnings has remained unchanged at 73 cents per share in the past 30 days.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed the same in one. Activision has a trailing four-quarter earnings surprise of 9.76%, on average. Let’s see how things have shaped up prior to this announcement.
Factors to Consider
Activision is expected to have benefited from the popularity of its franchises, including Call of Duty (COD), Overwatch, Hearthstone, World of Warcraft, Candy Crush Saga and Candy Crush Friends Saga, in the to-be-reported quarter.
The expanding user bases of COD, Hearthstone, World of Warcraft and King’s franchises are expected to have boosted in-game spending, driving net bookings and the top line in the to-be-reported quarter.
Activision expects net bookings of $1.811 billion for the first quarter of 2022.
Activision Blizzard, Inc Price, Consensus and EPS Surprise
Steady video game spending in the quarter is expected to have benefited Activision. Per VentureBeat, which cited NPD data, consumer spending on video games was down 2% and 6% year over year in January and February, respectively.
In the last reported quarter, several major game releases like Fractured in Alterac Valley, Hearthstone Mercenaries and Call of Duty: Vanguard are expected to have increased active user growth in the to-be-reported quarter. This is expected to boost the top-line growth. These last quarter releases are expected to have had a positive impact on the user engagement in the first quarter of 2022.
Intensifying competition from game publishers like Tencent (TCEHY - Free Report) , Roblox (RBLX - Free Report) and NetEase (NTES - Free Report) is expected to have hurt Activision’s top line in the first quarter.
Tencent’s Honor of Kings and PUBG Mobile and Roblox’s Roblox were the first, second and fifth top-grossing games, respectively, in terms of overall revenues in January, per Sensor Tower data. In terms of app store revenues, Tencent’s Honor of Kings and PUBG Mobile held the first and second spots, while Roblox’s Roblox held the fourth position in the top-grossing games list. NetEase’s Fantasy Westward Journey and Activision-subsidiary King’s Candy Crush Saga held the sixth and seventh top-grossing mobile games in January.
Key Q1 Development
On Jan 18, Microsoft (MSFT - Free Report) announced plans to acquire Activision Blizzard.
Microsoft will pay $95.00 per Activision share, with the total transaction value being $68.7 billion. The deal is expected to close in the fiscal year 2023.
Zacks Rank
Activision has a Zacks Rank #3 (Hold) currently.
ATVI is up 18.6% in the past year compared with the Zacks Toys - Games - Hobbies industry’s return of 1.3% and against the Consumer Discretionary sector’s fall of 14.4% in the year-to-date period.
Image: Bigstock
Activision (ATVI) to Report Q1 Earnings: What's in Store?
Activision Blizzard is set to report first-quarter 2022 results on Apr 25.
The Zacks Consensus Estimate for revenues is pegged at $1.80 billion, indicating a decline of 12.86% from the year-ago quarter’s reported figure.
The consensus mark for first-quarter earnings has remained unchanged at 73 cents per share in the past 30 days.
The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters and missed the same in one. Activision has a trailing four-quarter earnings surprise of 9.76%, on average.
Let’s see how things have shaped up prior to this announcement.
Factors to Consider
Activision is expected to have benefited from the popularity of its franchises, including Call of Duty (COD), Overwatch, Hearthstone, World of Warcraft, Candy Crush Saga and Candy Crush Friends Saga, in the to-be-reported quarter.
The expanding user bases of COD, Hearthstone, World of Warcraft and King’s franchises are expected to have boosted in-game spending, driving net bookings and the top line in the to-be-reported quarter.
Activision expects net bookings of $1.811 billion for the first quarter of 2022.
Activision Blizzard, Inc Price, Consensus and EPS Surprise
Activision Blizzard, Inc price-consensus-eps-surprise-chart | Activision Blizzard, Inc Quote
Steady video game spending in the quarter is expected to have benefited Activision. Per VentureBeat, which cited NPD data, consumer spending on video games was down 2% and 6% year over year in January and February, respectively.
In the last reported quarter, several major game releases like Fractured in Alterac Valley, Hearthstone Mercenaries and Call of Duty: Vanguard are expected to have increased active user growth in the to-be-reported quarter. This is expected to boost the top-line growth. These last quarter releases are expected to have had a positive impact on the user engagement in the first quarter of 2022.
Intensifying competition from game publishers like Tencent (TCEHY - Free Report) , Roblox (RBLX - Free Report) and NetEase (NTES - Free Report) is expected to have hurt Activision’s top line in the first quarter.
Tencent’s Honor of Kings and PUBG Mobile and Roblox’s Roblox were the first, second and fifth top-grossing games, respectively, in terms of overall revenues in January, per Sensor Tower data. In terms of app store revenues, Tencent’s Honor of Kings and PUBG Mobile held the first and second spots, while Roblox’s Roblox held the fourth position in the top-grossing games list. NetEase’s Fantasy Westward Journey and Activision-subsidiary King’s Candy Crush Saga held the sixth and seventh top-grossing mobile games in January.
Key Q1 Development
On Jan 18, Microsoft (MSFT - Free Report) announced plans to acquire Activision Blizzard.
Microsoft will pay $95.00 per Activision share, with the total transaction value being $68.7 billion. The deal is expected to close in the fiscal year 2023.
Zacks Rank
Activision has a Zacks Rank #3 (Hold) currently.
ATVI is up 18.6% in the past year compared with the Zacks Toys - Games - Hobbies industry’s return of 1.3% and against the Consumer Discretionary sector’s fall of 14.4% in the year-to-date period.
You can see the complete list of Zacks #1 Rank stocks here.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.