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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 2019 results on May 2.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and came in line with the same in the remaining quarter, the average positive surprise being 20.69%.
In the last reported quarter, Activision’s adjusted earnings of 90 cents per share surged 83.7% year over year and came well above the guided figure of 64 cents. Net revenues (including deferrals) increased 7.4% year over year to $2.84 billion.
The Zacks Consensus Estimate for first-quarter earnings has remained steady at 26 cents per share over the past seven days. The figure indicates a decline of 31.6% from the year-ago period reported figure. Management anticipates GAAP earnings of 39 cents in the to-be-reported quarter.
Notably, the consensus mark for revenues is pegged at $1.24 billion, indicating a decline of 10.6% from the year-ago period reported figure. Management expects non-GAAP revenues of $1.72 billion in the to-be-reported quarter.
Let’s see how things are shaping up for the upcoming announcement.
Overwatch’s Popularity: Key Catalyst
Activision’s top-line is expected to benefit from increasing popularity of its Overwatch League. The 2019 Overwatch League, which began on Feb 14, 2019, not only features an extended team lineup but also new venues. Increase in number of venues reflects the growing appeal of the league.
Moreover, Activision unveiled a new season in Call of Duty: Black Ops 4 - Operation Grand Heist in first-quarter 2019. The season, which boasts a lot of new features, is expected to drive user engagement levels and revenues.
Sekiro: Shadows Die Twice: Most Viewed Game in Q1
Moreover, Activision’s first-quarter 2019 results are expected to benefit from the solid performance of Sekiro: Shadows Die Twice. The game, which was released in the first quarter, became one of the popular game launches of 2019 so far.
Additionally, Sekiro: Shadows Die Twice became the most viewed game on Amazon’s (AMZN - Free Report) Twitch on its release day – Mar 22. Moreover, the game sold more than 2 million copies globally in less than 10 days of its release. Further, in less than a week, the game garnered 1.1 billion “minutes watched” on Twitch.
Activision also stated that Sekiro: Shadows Die Twice achieved the “Must-Play” status on Metacritic. Notably, the game has been given the status that only 1% of the games get each year, per management.
Sekiro: Shadows Die Twice, which has been equipped with new features like vertical traversal is likely the reason behind increased user view rate on Twitch. The game was also well received by users and critics, per VentureBeat.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Activision has a Zacks Rank #3 and an Earnings ESP of +7.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some companies, which, per our model, also have the right combination of elements to post earnings beat this quarter:
SeaWorld Entertainment, Inc. has an Earnings ESP of +16% and a Zacks Rank #1.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Image: Bigstock
Activision (ATVI) to Report Q1 Earnings: What's in Store?
Activision Blizzard is set to report first-quarter 2019 results on May 2.
Notably, the company’s earnings beat the Zacks Consensus Estimate in three of the trailing four quarters and came in line with the same in the remaining quarter, the average positive surprise being 20.69%.
In the last reported quarter, Activision’s adjusted earnings of 90 cents per share surged 83.7% year over year and came well above the guided figure of 64 cents. Net revenues (including deferrals) increased 7.4% year over year to $2.84 billion.
Activision Blizzard, Inc Price and EPS Surprise
Activision Blizzard, Inc Price and EPS Surprise | Activision Blizzard, Inc Quote
The Zacks Consensus Estimate for first-quarter earnings has remained steady at 26 cents per share over the past seven days. The figure indicates a decline of 31.6% from the year-ago period reported figure. Management anticipates GAAP earnings of 39 cents in the to-be-reported quarter.
Notably, the consensus mark for revenues is pegged at $1.24 billion, indicating a decline of 10.6% from the year-ago period reported figure. Management expects non-GAAP revenues of $1.72 billion in the to-be-reported quarter.
Let’s see how things are shaping up for the upcoming announcement.
Overwatch’s Popularity: Key Catalyst
Activision’s top-line is expected to benefit from increasing popularity of its Overwatch League. The 2019 Overwatch League, which began on Feb 14, 2019, not only features an extended team lineup but also new venues. Increase in number of venues reflects the growing appeal of the league.
Moreover, Activision unveiled a new season in Call of Duty: Black Ops 4 - Operation Grand Heist in first-quarter 2019. The season, which boasts a lot of new features, is expected to drive user engagement levels and revenues.
Sekiro: Shadows Die Twice: Most Viewed Game in Q1
Moreover, Activision’s first-quarter 2019 results are expected to benefit from the solid performance of Sekiro: Shadows Die Twice. The game, which was released in the first quarter, became one of the popular game launches of 2019 so far.
Additionally, Sekiro: Shadows Die Twice became the most viewed game on Amazon’s (AMZN - Free Report) Twitch on its release day – Mar 22. Moreover, the game sold more than 2 million copies globally in less than 10 days of its release. Further, in less than a week, the game garnered 1.1 billion “minutes watched” on Twitch.
Activision also stated that Sekiro: Shadows Die Twice achieved the “Must-Play” status on Metacritic. Notably, the game has been given the status that only 1% of the games get each year, per management.
Sekiro: Shadows Die Twice, which has been equipped with new features like vertical traversal is likely the reason behind increased user view rate on Twitch. The game was also well received by users and critics, per VentureBeat.
What Our Model Says
According to the Zacks model, a company with a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) has a good chance of beating estimates if it also has a positive Earnings ESP. Sell-rated stocks (Zacks Rank #4 or 5) are best avoided.
Activision has a Zacks Rank #3 and an Earnings ESP of +7.69%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are some companies, which, per our model, also have the right combination of elements to post earnings beat this quarter:
Electronic Arts Inc. (EA - Free Report) has an Earnings ESP of +16.3% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
SeaWorld Entertainment, Inc. has an Earnings ESP of +16% and a Zacks Rank #1.
Is Your Investment Advisor Fumbling Your Financial Future?
See how you can more effectively safeguard your retirement with a new Special Report, “4 Warning Signs Your Investment Advisor Might Be Sabotaging Your Financial Future.”
Click to get it free >>