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Activision Blizzard Misses Earnings Expectations As 'Call of Duty' Demand Declines

Published 04/25/2022, 10:04 AM
Updated 04/25/2022, 10:08 AM
© Reuters
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By Sam Boughedda

Investing.com -- Activision Blizzard Inc (NASDAQ:ATVI) stock dipped in early Monday trading after the company posted first-quarter earnings and revenue that missed analyst expectations.

The videogame company announced earnings per share of $0.64 on adjusted revenue of $1.48 billion. Analysts polled by Investing.com anticipated EPS of $0.70 on revenue of $1.82 billion.

The company's first-quarter earnings were impacted by Call of Duty net bookings on console and PC declining year-over-year, with lower premium sales for "Call of Duty: Vanguard" and lower engagement in "Call of Duty: Warzone."

Microsoft (NASDAQ:MSFT) plans to acquire Activision Blizzard for $95 per share in an all-cash transaction, which is expected to close in Microsoft’s fiscal year ending June 30, 2023. As a result of the deal, Activision didn't host a conference call, issue an earnings presentation, or provide financial guidance.

The company's stock is down 1.5% Monday.

Note: This article was corrected at 11:48am to reflect adjusted revenue (GAAP revenue less net deferrals), which is the number analysts forecast for revenues.

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