Activision Blizzard Inc's earnings beat Wall Street expectations after
its "Call of Duty" game had blockbuster sales over the crucial holiday
quarter, helping its shares climb 5 percent.
The world's largest
videogames publisher also forecast a first-quarter profit above industry
analyst targets, guiding to earnings, excluding items, of 10 cents a
share, versus an average forecast of about 9.7 cents.
Shares of Activision were up to $12.62 in after-hours trading, from a close of $12.06 on the Nasdaq.
shooter "Call of Duty:Black Ops 2" hit store shelves in November and
was a holiday blockbuster that reached $1 billion in global sales within
15 days of its release.
Activision, known for hardcore shooter
games, is also diversifying its revenue stream and stemming subscriber
losses from titles like its child-friendly "Skylanders."
game's holiday iteration, "Skylander's Giants", sold well and took the
franchise's total sales, including game packs, toys and accessories, up
to $500 million since its 2011 release, according to Activision.
non-GAAP revenue, adjusted for the deferral of digital revenue and
other items, rose 8.3 percent to $2.6 billion from $2.4 billion a year
ago, surpassing Wall Street's average revenue forecast for $2.44
And non-GAAP income was $891 million, or 78 cents per
share, in the fourth quarter, compared with $725 million, or 62 cents a
© Thomson Reuters 2013