Activision Blizzard reported its earnings report last week, beating the market expectations as it raised its full-year guidance. Earnings per share exceeded the estimated 49 cents as it had 60 cents in the said period.
Revenue of Activision was at $1.90 billion, compared to the expected value of $1.74 billion in the quarter.
Additionally, Activision Blizzard announced a decline in its monthly active users for the said quarter. It was at 384 million which is a drop by 6% from the second quarter of the current season. In a year-over-year basis, it plunged by 20%.
As for its King Game Segment, figures showed that the segment had 100 million less of monthly active users. The revenue of this segment had $528 million beating the estimated value of$483 million.
Call of Duty is a first-person shooter and is one of the widely known games of ActiVision.
At $759 million, The Activision Segment also had its revenue surpass the expected data of $690 million. Also, the Blizzard also saw an optimistic result of $531 million which is more than the projected value of $508 million.
The gaming company raised its full-year guidance and currently estimates an EPS of $2.08 on $6.68 billion in revenue. Previously, Activision Blizzard forecasted adjusted full-year earnings of $1.94 on $6.40 billion in revenue.
This coming December, Activision will be entering the e-sport League Market with Overwatch. The company mentioned at the recent Blizzcon event that it wanted to take advantage of the large portion of the fast-growing e-sports market.
However, But some analysts are apprehensive that such league could perhaps not be an instant success. Analysts had forecasted a mixed third quarter for Activision Blizzard for such reason.
"We're building the League for the long term, and in our view, the opportunity rivals what you see in professional sports from a lot of perspectives but starting with the demographics of the audience," Chief Executive Officer Robert Kotick told reports. "The first season is really about building a solid foundation."
Shares of Activision Blizzard experienced a drop on its earnings results. The stock declined by -3.51% which is a massive 63.15 tumble as well. The drop can be rooted from the analysts’ uncertainties about the success of its e-sport entry.
The Relative Strength Index of the gaming company also tumbled below the 50’s region, hitting 49.34 respectively.
As for its Coppock curve, the indicator signaled a downtrend meaning that the above mentioned decline did affect in all aspects of its trades. While at high, the curve ended at 8.41 – a positive region which would recommend a buy for the stock.
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