Activision Blizzard Earnings Up Next

Activision Blizzard (Nasdaq: ATVI  ) is expected to report Q4 earnings on Feb. 7. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Activision Blizzard's revenues will grow 1.3% and EPS will grow 16.1%.

The average estimate for revenue is $2.44 billion. On the bottom line, the average EPS estimate is $0.72.

Revenue details
Last quarter, Activision Blizzard logged revenue of $751.0 million. GAAP reported sales were 12% higher than the prior-year quarter's $754.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.15. GAAP EPS of $0.20 for Q3 were 54% higher than the prior-year quarter's $0.13 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 72.5%, 390 basis points better than the prior-year quarter. Operating margin was 27.0%, 510 basis points better than the prior-year quarter. Net margin was 26.9%, 730 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $4.80 billion. The average EPS estimate is $1.12.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,944 members out of 7,172 rating the stock outperform, and 228 members rating it underperform. Among 1,487 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,453 give Activision Blizzard a green thumbs-up, and 34 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Activision Blizzard is outperform, with an average price target of $15.67.

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