Activision Beats Street, Starts Buying Back Stock

Activision-Blizzard (ATVI) announced earnings numbers that were significantly better than expected, but guidance is low.

The company earned $0.49 per share on $2.5 billion in revenue on a non-GAAP basis, solidly above estimates of $0.44 per share on $2.23 billion in revenue.

The company received a huge boost in the holiday season from the blockbuster “Call of Duty: Moder Warfare 2,” which took in over half a billion dollars in its first five days of sales.

Forecasts for this quarter fell short of expectations however. Activision is projecting earnings of $0.02 on $525 million in revenue, versus an expected $0.08 on $740 million.

The company also announced that it would issue a $0.15 annual dividend, and is initiating a stock buyback of up to $1 billion.

Sales appear to be weaker than expected across the industry; EA also slashed its forecast for this quarter when it released earnings earlier this week.

The stock is up over 4.6% in the early minutes of after market trading.

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