Activision Blizzard Inc. (NASDAQ: ATVI) reported its third quarter earnings that surpassed expectations of both analysts and the company itself, but shares fell by 3.5 percent during trading hours on Friday.
For the third quarter, Activision reported revenue of $1.9 billion, beating Thomson Reuters analysts’ estimates of $1.74 billion. The company posted an EPS of $0.60, but with negative impacts came down to $0.47 compared to Thomson Reuters’ estimates of $0.49.
All three divisions of the company beat revenue estimates. Activision reported $759 million beating the $690 million by StreetAccount. Blizzard reported $531 million beating the $508 million by Street Account. King reported $528 million beating the $483 million by Street Account.
Activision’s record revenue was attributable to new updates along its game platforms. King’s revenue has grown for 10 consecutive quarters straight now, becoming the #1 mobile video game publisher in the U.S.
The better than expected revenue and EPS marks it a record for the company in a year to date period.
Activision recorded 384 million monthly active users. Activision and Blizzard hit a third quarter record in monthly users, but overall including King, overall users fell by 6 percent year over year. Although monthly active users fell.
Unlike the other two branches of the company, Blizzard reported a lower revenue year over year now. Blizzard reported a revenue of $727 million in the same quarter last year, falling 37 percent year over year now.
But Blizzard is turning heavy into the eSport league for its first person shooter game, Overwatch. It is expected to launch sometime in December, but analysts are concerned that it may not be successful as the company hopes for.
Activision has now increased its fiscal year outlook. The company now expects on a GAAP outlook revenue of $6.67 billion, with net deferrals of $175 million. The company expects a non-GAAP EPS of $2.08, with net deferrals of $0.08.
Activision Blizzard shares are now up 75 percent year to date.