FXEMPIRE
All
Ad
Advertisement
Advertisement
Vladimir Zernov
Add to Bookmarks
ATVI

Activision Blizzard Video 05.02.21.

Activision Blizzard Reported Strong Q4 Results

Shares of Activision Blizzard are gaining about 10% in today’s trading session after the release of a strong Q4 earnings report.

Advertisement
Know where the Market is headed? Take advantage now with 

Trading Derivatives carries a high level of risk to your capital and you should only trade with money you can afford to lose. Trading Derivatives may not be suitable for all investors, so please ensure that you fully understand the risks involved, and seek independent advice if necessary. A Product Disclosure Statement (PDS) can be obtained either from this website or on request from our offices and should be considered before entering into a transaction with us. Raw Spread accounts offer spreads from 0.0 pips with a commission charge of USD $3.50 per 100k traded. Standard account offer spreads from 1 pips with no additional commission charges. Spreads on CFD indices start at 0.4 points. The information on this site is not directed at residents in any country or jurisdiction where such distribution or use would be contrary to local law or regulation.

Activision Blizzard reported revenue of $3.05 billion and GAAP earnings of $0.65 per share, beating analyst estimates on both earnings and revenue.

The company also increased its annual dividend from $0.41 per share to $0.47 per share. At the current stock price, Activision Blizzard yields 0.46%. It should be noted that game developers have never been considered as income stocks so Activision Blizzard’s dividend serves as an additional positive catalyst rather than a center of the bullish thesis.

Activision Blizzard has also announced a two-year stock repurchase program. The company can buy up to $4 billion of its common shares during this period, and the buyback program will likely provide additional support to the stock.

Advertisement

What’s Next For Activision Blizzard?

Activision Blizzard benefited from strong demand for its products during the pandemic. While the current virus containment measures are not as strict as the ones that were implemented in spring of 2020, demand for video games remains robust.

Call of Duty and World of Warcraft performed well in the fourth quarter of 2020, and the company believes that this momentum will be sustained in 2021. The company also noted that the first stage of regional testing for the mobile Diablo Immortal went well, and Blizzard planned further rounds of testing ahead of the launch planned for later this year.

Diablo is a very popular franchise, and the release of the mobile version will likely boost the company’s financial performance although Activision Blizzard did not include any material contribution from the title into its 2021 outlook.

Not surprisingly, analysts rushed to revise their forecasts after the release of Q4 results as solid financial performance, dividend hike and stock buyback are expected to serve as significant upside catalysts.

For a look at all of today’s economic events, check out our economic calendar.

Don't miss a thing!
Discover what's moving the markets. Sign up for a daily update delivered to your inbox

Trade With A Regulated Broker