Stock trading close to 52-week high
Activision Blizzard (ATVI) stock has risen over 21.5% since the company announced its Q1 2018 results on May 3. The stock is currently trading at $81.27, which is 42% above its 52-week low of $57.29 and 0.5% below its 52-week high of $81.64. In comparison, the SPDR S&P 500 ETF (SPY) and the Invesco QQQ Trust Series ETF (QQQ) have risen 7% and 11.2%, respectively, since May 3.
ATVI beat analysts’ earnings estimate by 8.6% in Q1 2018, boosting its stock by ~4.5%. Analysts’ average price target of $78.27 for Activision indicates a 3.7% fall over the next 12 months. We’ll look at what drove Activision’s stock price throughout this series.
Revenue expected to rise 5% this year
In Q3 2018, analysts expect ATVI’s revenue to fall 2% YoY (year-over-year) to $1.86 billion, and its EPS to rise ~10% YoY from $0.60 to $0.65. In fiscal 2018, its revenue is expected to rise 5% YoY to $7.51 billion, while its EPS are expected to rise 14% to $2.60.
Analysts expect the company’s revenue to rise ~7% and its EPS to rise ~15% to $2.99 in fiscal 2019, and its revenue to rise 8.8% YoY to $8.8 billion in fiscal 2020. Analysts expect the company’s EPS to rise at a compound annual rate of 16.9% over the next five years, whereas its EPS have grown 38.6% over the last five years.