Activision Blizzard, Inc.(NASDAQ:ATVI) gathered steam on the release of second-quarter earnings which beat estimated, Investors were also largely unfazed by lower projections for third-quarter revenue, continuing to see the video game maker’s 2019 as a rebuilding and investment year ahead of a more exciting future.
The company, based in Santa Monica, Calif., reported second-quarter earnings of 38 cents a share, besting the Street estimate of 26 cents on revenue of $1.21 billion, slightly ahead of analysts’ expectations.
CEO Bobby Kotick said, "Our second quarter results exceeded our prior outlook for both revenue and earnings per share.
"In the first half of 2019 we have prioritized investments in our key franchises and, beginning in the second half of this year our audiences will have a chance to see and experience the initial results of these efforts."
Analysts see several catalysts ahead for the "Call of Duty" and "World of Warcraft" producer and several weighed to reiterate bullish recommendations.
Credit Suisse analysts maintained an Outperform rating on the stock with a $64 target price, while UBS analysts kept a Buy rating on the stock and raised the price target from $52 to $56.
Moreover, Bank of America analyst reiterated a Buy rating and raised the target price from $56 to $57. Finally, SunTrust Robinson Humphrey maintained a Buy rating and a $52 price target on the stock.
ATVI shares retreated $1.16, or 2.4%, to $48.17
