ACTIVISION BLIZZARD EPS BEATS ESTIMATES STOCK SINKS ON GUIDANCE
Activision Blizzard’s stock is currently trading at 47.30-lower by 4.21% as compared to its previous close. In the Premarket trading session on Friday, the stock was trading lower by 1.36%. The stock has continued falling after the opening bell.
Activision Blizzard reported its second-quarter earnings after the market close on Thursday. The videogame maker generated an EPS (excluding items) of 38 cents for the second quarter. The EPS was above the market expectation of 26 cents. Activision Blizzard brought in $1.21 billion in revenue for the second quarter. The revenue was above the consensus estimates of $1.19 billion.
The videogame maker expects adjusted revenue of $1.10 billion for the current quarter, which was below the market expectation of $1.36 billion. Activision Blizzard forecasts adjusted EPS of 20 cents for the third quarter which missed the consensus estimates by 20 cents.
The videogame maker slashed 800 jobs during the second quarter. The company raised its full-year forecast for adjusted profit to $2.15 a share from $2.10 per share. Activision Blizzard reaffirmed revenue expectation of $6.30 billion.
On the technical front, the RSI is currently at 50.89% and suggests that the market can move in the downward direction. The current price is below the MA5. The current price is below the middle line of the Bollinger Bands and is heading downwards.
TRADE SUGGESTION- LIMIT SELL AT 47.70 TAKE PROFIT AT 46.60 STOP LOSS AT 48.25