Activision Blizzard Holiday Sales and Revenue Outlook Top Street Expectations

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Shares of Activision Blizzard Inc. rose in Thursday’s extended session after the video game publisher‘s sales for the holiday quarter and revenue outlook for the current quarter beat Wall Street expectations. Activision Blizzard ATVI, shares of -0.10% gained 4.7% after hours, following a 0.1% drop in the regular session to close at $ 92.68.

The company reported fourth-quarter net income of $ 508 million, or 65 cents a share, compared to $ 525 million, or 68 cents a share, in the same period last year. Analysts surveyed by FactSet had forecast earnings of 53 cents a share. Revenue increased to $ 2.41 billion from $ 1.99 billion in the prior year quarter. Adjusted earnings, which exclude share-based compensation expense and other items, increased to 76 cents a share from 62 cents a share in the same period last year. Analysts had forecast adjusted earnings of 82 cents a share on revenue of $ 2.38 billion. Activision Blizzard expects adjusted earnings of 84 cents a share on revenue of $ 2.02 billion for the first quarter and $ 3.34 per share on revenue of $ 8.23 ​​billion for the year. Analysts estimate revenue of $ 1.68 billion for the quarter and $ 8.34 billion for the year. In November, the company released its “Black Ops: Cold War” installment of its “Call of Duty” franchise, along with the “Shadowlands” expansion of its “World of Warcraft” franchise that was originally slated for late October. On Tuesday, shares of Electronic Arts Inc. EA, -1.56% retreated from a record close after the video game publisher reported quarterly results that fell short of Wall Street expectations. Take-Two Interactive Software Inc. TTWO, -0.45% is scheduled to report its results after the markets close on Monday.