Video game publisher Activision Blizzard (ATVI) late Tuesday topped Wall Street’s targets for the first quarter. It also guided analysts higher for the full year. ATVI stock rose in extended trading.
The Santa Monica, Calif.-based company earned an adjusted 84 cents a share on net bookings of $2.07 billion in the March quarter. Analysts had expected earnings of 70 cents a share on sales of $1.78 billion. On a year-over-year basis, Activision earnings rose 45% while net bookings climbed 36%.
For the current quarter, Activision expects to earn an adjusted 70 cents a share on net bookings of $1.85 billion. Wall Street had predicted Activision earnings of 75 cents a share on sales of $1.81 billion.
For the full year, Activision now predicts adjusted earnings of $3.70 a share on sales of $8.6 billion. Three months ago, it forecast adjusted earnings for 2021 of $3.60 a share on sales of $8.45 billion. Analysts had been looking for 2021 earnings of $3.65 on sales of $8.55 billion.
ATVI Stock Jumps In Late Trades
“Our continued overperformance enables us to raise our outlook for the full year,” Chief Executive Bobby Kotick said in a news release.
The company credited “very strong growth” from its largest franchises for its first-quarter beat. Those franchises include “Call of Duty,” “World of Warcraft” and “Candy Crush.”
In after-hours trading on the stock market today, ATVI stock jumped 5.7%, near 93.75. During the regular session Tuesday, ATVI stock fell 2.7% to 88.69.
Skillz Posts Mixed First-Quarter Report
In addition to ATVI stock, another video game stock moving on earnings news Tuesday was Skillz (SKLZ). San Francisco-based Skillz operates a platform for mobile game developers to offer player competitions.
Skillz lost 15 cents a share in the first quarter, vs. a loss of 6 cents a share in the year-earlier period. Sales rose 92% to $83.7 million in the March quarter. Analysts expected Skillz to lose 10 cents on sales of $78.6 million.
Skillz also raised its 2021 revenue guidance to $375 million, which would equate to 63% year-over-year growth.
In after-hours trading, SKLZ stock fell 0.3%, near 16.90.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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