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Activision Blizzard misses first-quarter EPS by 6 cents

Activision Blizzard (NASDAQ: ATVI) recorded a fist-quarter of EPS of about $0.64, 6 cents worse than the $0.7 financial analyst estimates. First-quarter revenue came to about $1.77 billion, which was also less than the $1.8 billion consensus estimates.

Activision misses Q1 consensus estimates

For the first quarter of 2022, Activision’s net revenues came to about $1.77 billion, including GAAP, a lot less than the $2.28 billion it recorded in the same quarter of the previous financial year. Digital channels recorded GAAP net revenues of $1.59 billion with a 27% GAAP operating margin.

Its $0.5 GAAP earnings per diluted share was also lower than the $0.79 it recorded in the same quarter of the previous year. The company recorded an operating cash flow of $642 million in the first quarter of 2021, less than the $844 million it recorded in the same quarter of the previous fiscal year.

Microsoft deal

In January of this year, Microsoft announced that it was going to spend $95 per share to acquire Activision Blizzard in an all-cash deal. However, the deal is still subject to Activision Blizzard’s shareholder approval and customary closing conditions. 

Business highlights

Activision Blizzard continues to connect and engage its network of millions of people globally in the first quarter. Financial performances dropped year-over-year, mainly reduced results for Call of Duty. Reduced results of Blizzard’s product cycle timing offset strong growth at King and equally affected the business as well.

Activision incurred a rise in legal and several other professional fees, mainly driven by fees linked with its proposed deal with Microsoft. The company claims that it’ll continue to increase its investments in its development resources so it can meet the growing demands of its players.

Activision’s team is making great progress in its broadened pipeline of interesting and compelling content for established franchises.

The post Activision Blizzard misses first-quarter EPS by 6 cents appeared first on Invezz.

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