Shares of video game maker Activision Blizzard (NASDAQ:ATVI) are rallying after the company topped Wall Street estimates with its latest results and first-quarter sales forecast.
Activision Blizzard posted $3.05 billion U.S. in revenue in the fourth quarter, excluding some items, while analysts projected $2.79 billion U.S. Adjusted earnings came in at $1.21 U.S. a share, compared with an average estimate of $1.17 U.S. Its outlook for the full year also topped projections.
Activision’s board increased the company’s dividend 15% to 47 cents U.S. a share, payable on May 6. It also embarked on a new two-year stock repurchase program of as much as $4 billion U.S.
The strong quarter from Activision Blizzard was due to stellar sales of the company’s franchise video games such as Call of Duty, World of Warcraft and Candy Crush. Activision Blizzard’s biggest brands are helping it maintain momentum, even as the industry moves past a lockdown-fueled boom in gaming.
The mobile edition of Call of Duty launched in China in late December, quickly reaching the top of the download charts. The first stage of regional testing for Diablo Immortal in December and January was met with positive feedback and strong engagement metrics, according to the company.
Activision Blizzard said it is planning to hire as many as 3,000 people this year, mostly in production and development, and said it doesn’t anticipate any delays in delivery of game titles slated for 2021.
Going forward, Activision Blizzard forecast revenue of $1.75 billion U.S. in the current first quarter of 2021, excluding some items, compared with the $1.68 billion U.S. expected by analysts. The company also forecast adjusted earnings of 65 cents a share for the first quarter, in line with estimates.
Shares of Activision Blizzard climbed as much as 5% to $97.35 U.S. in after hours trading Thursday. They had been little changed this year after rising 56% in 2020.
Tech Insider
