Activision Blizzard’s latest
Activision Blizzard’s (ATVI) revenue rose at a four-year CAGR (compound annual growth rate) of 13% to $7.2 billion in 2017. Its net income rose at a four-year CAGR of 15% to $1.7 billion. Its revenue rose 7% to $3.6 billion in the first half of 2018.
Its Digital Online Channel segment accounted for 75% of its revenue. Its Retail Channel and Other segments generated the rest of its revenue. The company’s international franchises played a crucial role in driving its revenue growth. The company announced two added Overwatch League franchise sales in Atlanta, Georgia, and Guangzhou, China. These segments’ combined net income rose 7% to $610 million.
Projections for ATVI
ATVI’s expected revenues are $7.5 billion, $8.1 billion, and $8.6 billion, respectively, for 2018, 2019, and 2020. Its projected net incomes are $2 billion, $2.4 billion, and $2.6 billion, respectively. The stock has “strong buy,” “buy,” and “hold” recommendations from seven, 12, and nine analysts, respectively. It has a “strong sell” recommendation from one analyst.
ATVI compared to the NASDAQ
At the end of last week, the stock had been beaten by the NASDAQ Composite Index in the last month, in the last year, and year-to-date. The stock closed at a 13% discount to its 52-week high and a 29% premium to its 52-week low at the end of the week.
This month, Activision Blizzard partnered with McFarlane Toys and BAIT to offer its fans new products ahead of the release of Call of Duty: Black Ops 4, which was released on October 12. The company continued to expand across the European, Asian, and Latin American markets and to attract new lifestyle and retail partners for its consumer product line-up. The line-up includes Call of Duty: Black Ops 4, the Spyro Reignited Trilogy, the Crash Bandicoot N.Sane Trilogy, and Bungie’s Destiny.