viewActivision Blizzard, Inc.

Activision Blizzard resumes trading after temporary halt; record 1Q overshadowed by weak guidance

Shares in the video game maker were temporarily halted this afternoon after Dow Jones broke an embargo on the results

world of warcraft
Activision posted record first-quarter sales and profits

Shares in Activision Blizzard Inc (NASDAQ:ATVI) have resumed trading after being temporarily halted earlier on Thursday afternoon.

The stock suddenly slumped 5% just after 1pm after Dow Jones “inadvertently” broke a news embargo and reported the video game developer’s first-quarter earnings ahead of their scheduled time.

1Q earnings beat

At 3pm, while trading was still halted, Activision officially reported adjusted earnings of US$0.38 a share for the opening three months of 2018, on revenue of US$1.38bn.

Both were ahead of expectations, with Wall Street analysts originally pencilling in earnings of US$0.35 and revenue of US$1.32bn.

The company said the beat was partly down to strong performances from its Call of Duty and World of Warcraft franchises, while Overwatch continues to add new players.

Activision Blizzard had another strong quarter, growing year-over-year, setting top and bottom line records, and over-performing guidance,” said Chief Executive Bobby Kotick.

“As we look ahead, our innovative core gaming pipeline, as well as initiatives like mobile, esports, and advertising, will continue to drive growth for our business.”

Outlook disappoints

Despite the record quarterly performance, second-quarter guidance disappointed.

Activision expects to report earnings per share of US$0.31 and revenue of US$1.35bn, versus forecasts of US$0.47 and US$1.45bn.

The California-based company added it will pay shareholders a quarterly dividend of US$0.34 a share.

Quick facts: Activision Blizzard, Inc.

Price: 69.43 USD

Market: NASDAQ
Market Cap: $53.49 billion

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