The company reports diluted earnings per share of .07 versus .04 predicted by the company. The Board of Directors approved a $1 billion share repurchase plan as well. The performance and earnings beat was affected most by the strength of Call of Duty, Guitar Hero, World of Warcraft and Star Wars: The Force Unleashed. Activision said some revenue previously expected to be gained in December will be realized in 2009. The holiday slate is the strongest in the company's history according to the CEO (See my previous post.) The company expects the December quarter to provide earnings per share of $0.29.
The company continues to grow stronger through acquisitions and mergers. The company owns the computer gaming market with WOW. The company is strong on Nintendo with the number one game on Nintendo DS (Guitar Hero on Tour). The company has great titles for Playstation and XBOX with Call of Duty and Guitar Hero.
Activision will have a great Christmas this season despite the economy.
The stock trades for around $10. ($10.75 as I am writing this)
Pick up some shares before Christmas, you'll be glad you did.
*Disclaimer, I own shares of Activision in my Sogotrade account. Don't have an online stock account, check out Sogotrade, the trades are only $3.