Earnings Preview: Analysts Expect Activision Blizzard's Revenue to Dip

Activision Blizzard ATVI announces its next round of earnings this Wednesday, August 3, 2011. Get the latest predictions in Benzinga's essential guide to the company's second quarter earnings report.

Earnings and Revenue:

Wall Street expects an EPS of 4 cents per share and revenues of $597.9 million. Investors will be keen to see how this quarter's numbers stack up against the year-ago quarter's positive EPS of 5 cents per share on revenues of $683 million. Investors are bracing themselves for Wednesday when we'll learn if Activision Blizzard reports expected declines in both EPS and revenue from the year-ago quarter.

Here's how the company's reported EPS has stacked up against analyst estimates in the past:

Stock Performance:

Shares of Activision Blizzard were trading at $11.87 as of July 28, 2011. Shares are down 3.1% year to date. For a full 12 months, the return has risen by 7.6%. Given that these returns are generally positive, long-term shareholders are probably satisfied going into this earnings release.

• Long-term shareholders are already enjoying 12-month gains prior to the announcement

Average Stock Rating:

The average rating by analysts for Activision Blizzard is a Moderate Buy. The strength of this rating has declined slightly over the past three months.

Competitors:

Wondering how Activision Blizzard compares to rivals in the same sector? Here are a few of the company's peers.

• Electronic Arts ERTS: Hold with a -$0.48 recent quarter EPS
• KONAMI Corp (ADR KNM: Strong Buy with a $0.28 recent quarter EPS
• Majesco Entertainment Company (COOL): Hold with a $0.13 recent quarter EPS

The toys/game/hobby company's industry has seen price/earnings contraction of 3.7% during the current fiscal year.

Finally, a description of the company's main areas of operation: Activision Blizzard is an online, personal computer (PC), console and handheld game publisher. It has three segments: Activision Publishing, Blizzard Entertainment and Activision Blizzard Distribution.

Take Action:

Now that you've gotten an advanced peak at Activision Blizzard's upcoming earnings numbers, keep an eye out for any surprises in the report and be ready to take action. Also, check back in with us after the announcement for a full recap and a guide to your next steps.

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