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ATVI’s Q4 Earnings: What’s the Word on Wall Street?


Feb. 5 2019, Updated 7:31 a.m. ET

ATVI’s fourth-quarter earnings

Activision Blizzard (ATVI) is scheduled to release its fourth-quarter earnings results on February 12. Analysts polled by Thomson Reuters expect the company to post revenue of $3.04 billion in the quarter—a year-over-year rise of 15.3%. ATVI’s EPS are also expected to surge to $1.28 in the fourth quarter. It posted EPS of $0.52 in the third quarter and $0.94 in the fourth quarter of 2017.

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Analysts’ recommendations

Activision Blizzard has received “strong buy” ratings from eight analysts, while 13 analysts have rated it as a “buy” or some equivalent. The remaining 11 analysts polled by Thomson Reuters on February 1 have rated the stock as a “hold.” Activision Blizzard has received a mean consensus price target of $60.54, which represents a potential upside of 31.6% over its closing price on February 1. Take-Two Interactive Software (TTWO) and Electronic Arts (EA) are trading 31.0% and 23.53% below their consensus price targets, respectively.

Recent changes

Wall Street has been generally pessimistic toward gaming stocks (TCEHY) this year, with ATVI being no exception. On January 30, Berenberg lowered ATVI’s price target from $80 to $55. Stifel also lowered ATVI’s target by $10 to $57. In January, Morgan Stanley lowered ATVI’s price target from $72 to $60, while Wedbush cut its target from $81 to $64.

ATVI saw a flurry on downgrades on January 11 after it announced that it had parted ways with Bungie. MKM Partners lowered Activision Blizzard’s fair value from $68 to $48. Benchmark lowered the stock’s price target from $93 to $87.


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