Activision Blizzard Is Ready to Return to Growth in 2020

The maker of World of Warcraft has spent the past year investing in content development to position the company for long-term growth. The absence of Destiny, which was cut out of Activision Blizzard's (NASDAQ: ATVI) lineup, is partly to blame for the lack of growth on the top line this year. But recent new releases and new content coming in 2020 are expected to return the company to growth next year.

Activision Blizzard is building momentum as the year comes to a close. The game maker delivered third-quarter earnings results that were well ahead of management's previous expectations. Revenue of $1.282 billion was above the outlook for $1.105 billion. Adjusted earnings were nearly double management's guidance, coming in at $0.38 per share. However, the bottom-line beat was partly due to favorable cost timing. The company plans to reinvest the profits in the fourth quarter on growing the company's audience reach, particularly in the Call of Duty franchise.

What's more, new releases are off to a strong start, and the company has a rich pipeline of new games and content currently in development. Here are a few takeaways from the third-quarter conference call that reveal a company laying the foundation for growth, not just in 2020, but for the next decade.

Source Fool.com