Activision Blizzard (ATVI) Q2 Earnings Report Preview

Activision Blizzard Inc. (NASDAQ:ATVI) is a video game holding company founded in 2008 as a result of a merger between Activision Inc. and Vivendi Games. It owns some of the very famous gaming titles such as Call of Duty, Candy Crush Saga, Diablo, and Warcraft. It develops games for all key platforms, including mobile, game consoles, and PCs. Moreover, it also conducts eSports leagues and tournaments to generate revenue, besides making money from ads and in-game content.

The videogame publisher recently announced better-than-expected financial results for the second quarter. Activision Blizzard reported earnings of $1.12 per share for the three months ended June 30, up from 75 cents per share in the comparable period of 2020. On an adjusted basis, the company earned $1.20 per share, ahead of the consensus forecast of 76 cents per share.

Revenue for the quarter came in at $2.3 billion, compared to $1.93 billion in the same period last year. Analysts, on average, were expecting Activision to post revenue of $1.89 billion. Total bookings in the quarter slipped to $1.92 billion but surpassed the consensus estimate of $1.91 billion.

Speaking on the results, CEO Bobby Kotick said, “With respect to our financial performance, we are pleased that the company continued to deliver strong results in the second quarter, and we are raising our outlook for the year. We remain intensely focused on the well-being of our employees and we are committed to doing everything possible to ensure that our company has a welcoming, supportive and safe environment where all of our team members can thrive.”

Looking forward, Activision expects adjusted earnings of 75 cents per share and revenue of $1.97 billion for the third quarter. The outlook aligns with analysts’ average estimate of 75 cents per share for earnings and $8.77 billion for revenue.

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