How Activision Blizzard Destroyed Analysts' Earnings Expectations
Investors anticipated that video game publisher Activision Blizzard (NASDAQ: ATVI) would report strong results for the first quarter, given more people at home during the COVID-19 outbreak. Still, the results released Tuesday completely obliterated Wall Street's highest expectations.
Activision Blizzard reported non-GAAP (adjusted) revenue of $1.52 billion, which came in above analysts' estimates of $1.32 billion. The performance was primarily driven by higher in-game spending, as the company's most popular franchises experienced heightened levels of player activity during the quarter.
The boost in digital revenue led to better-than-expected adjusted earnings per share of $0.76, which blew past analysts' EPS estimates of $0.38. Here's the lowdown on what drove these impressive results.
Source Fool.com
