Will Franchise Strength Aid Activision (ATVI) Q1 Earnings?

Activision Blizzard Inc. ATVIis set to report first-quarter 2018 results on May 3.

The company beat the Zacks Consensus Estimate in three of the last four quarters with an average positive surprise of 36.06%.

In the last reported quarter, the company’s non-GAAP earnings were 49 cents per share, which increased 36.

1% from the year-ago quarter. Including GAAP deferrals, adjusted earnings of 94 cents per share matched the Zacks Consensus Estimate and increased 2 cents from the prior-year quarter.
    
Revenues (including deferrals) of $2.64 billion surpassed the Zacks Consensus Estimate of $2.61 billion. Excluding deferral revenues, Activision reported sales of $2.043 billion, up 20.2%. The top line was driven by strength in digital revenues, Overwatch, Call of Duty: World War IIand Destiny 2.

Let’s see how things are shaping up for this announcement.    

Factors to Consider

Activision’s popularity is primarily driven by its well-known franchises, which will continue to fuel top-line growth. Call of Dutyis one of the biggest growth drivers for Activision. Notably, Call of Duty: World War IIwas the top-selling console video game in 2017, globally.