Activision Blizzard (ATVI 63.70, -1.82) has slid 2.7% after reporting mixed results and issuing above-consensus guidance for the fiscal year. Even with today's decline, the stock remains up more than 75.0% for the year.
Activision Blizzard reported above-consensus earnings of $0.25 per share on a 3.2% year-over-year increase in revenue to $1.62 billion, which was shy of expectations.
In addition, it is worth pointing out that Blizzcon—a video game convention organized by the company's subsidiary Blizzard Entertainment—will be taking place this weekend. Blizzard is expected to use the convention to reveal plans for games like Overwatch, World of Warcraft, Heroes of the Storm, and Hearthstone. Furthermore, today marks the release date of Call of Duty: WWII—a game for which the company has very high hopes. Early user reviews on the Steam platform have been mixed.
During the third quarter, Activision had 49 million Monthly Active Users in its online community, representing the highest total for the third quarter. Blizzard had 42 million Monthly Active Users in its community, representing the fourth consecutive record quarter.
The company reported that users spent more than 50 minutes per day in Activision Blizzard games. Like other game publishers, Activision uses in-game item/token sales to extract additional revenue from active users. During the third quarter, the company generated over $1 billion of in-game revenues, representing a year-to-date record.
Looking ahead, the company expects that earnings for the fourth quarter will hit $0.10 per share, which is shy of expectations. However, earnings for the full year are expected to reach $1.22 per share, which is ahead of market expectations. The company expects that fourth quarter revenue will total $1.70 billion while revenue for the full year is expected at $6.68 billion.