On Thursday, in after hours trade, Activision Blizzard, Inc. (NASDAQ:$ATVI) shares were down 1.5%. Why? It started after the video game developer reported 2017 guidance that was below Wall Street expectations.
For the second quarter, Activision Blizzard posted a net income of $243 million (32 cents per share). This is significant compared to $151 million (20 cents per share) during the same quarter in 2016. Further, based on the FactSet consensus, Activision Blizzard was forecast to report per-share earnings of 30 cents.
The Santa Monica-based company said that redefined non-GAAP earnings were 55 cents per share, which included the net effect of revenue deferrals accounting treatment on numerous online-enabled products.
The report also noted that revenue for the quarter – which was impacted by the GAAP deferrals – came in at $1.63 million. Again, this is significant, as it is up from $1.57 billion and above the FactSet consensus of $1.23 billion.
Additionally, the video game manufacturer announced that it had 407 million monthly active users in the quarter. They said it forecasts revenue for the full year to be $6.40 billion, which is below the FactSet forecast of $6.54 billion. We also see in the report that Activision expects redefined non-GAAP per-share earnings to be $1.94, which is below FactSet’s consensus of $2.02.
So far this year, Activision Blizzard shares have gained more than 77%.
Featured Image: twitter
