Sales of "Call of Duty," "World of Warcraft" as well as delayed expenses are expected to give Activision Blizzard Inc.'s first-quarter results a boost when the video game publisher reports earnings after the market closes Thursday.
The Santa Monica, Calif. company had raised its guidance in April due to solid demand for its top two games. And it said some operating expenses it planned to incur in the first quarter will now be pushed to the second quarter.
Activision said it expects to track above its previous forecast of $1.1 billion in net revenue and earnings of 20 cents per share. The company had expected adjusted earnings of 2 cents per share on adjusted revenue of $525 million. Adjusted revenue excludes sales and costs related to certain games with an online play feature.
Wedbush Morgan analyst Michael Pachter, who rates Activision "Outperform," said he expects the company to "slightly" raise its 2010 adjusted profit and sales guidance thanks to "positive Q1 momentum." Initial second-quarter guidance, however, may be below expectations because of the expenses that moved from the first quarter into the second, he added.
Copyright 2010 AP News
