Activision Adjusts Q4 Earnings Upward
A few weeks ago, when Activision announced their third-quarter fiscal earnings they announced a Q4 revenue prediction of $170M. Activision's Q3 revenue (October 1st-December 31st) earned the publisher $822.8M. Clearly a feat accomplished by the boost of the holiday season. During a conference call earlier today, Activision's CFO Thomas Tippl informed analysts of the company’s adjusted Q4 revenue estimate: which is $200M. And the reason behind this adjustment? Believe it or not, the PlayStation 3.
Tippl says Activision is happy with the "better visibility regarding the allocation of PlayStation 3 hardware to its European distribution business." Indeed the publisher is banking on the European PS3 launch to drive revenue up for their final quarter ending March 31st. The launch of the PS3 across Europe, Australia and additional parts of Asia will occur on March 23rd. And if Europe's history with Sony is any indication, expect this launch to go very smoothly with consoles sold out everywhere.
Additionally, Activision says they expect a loss of 9-cents per share (8-cents if excluding stock option costs) for Q4. The LPS is actually adjusted from 10-cents (9-cents if excluding stock option costs). With this news, Activision has now boosted their fiscal 2007 outlook from $1.37B to $1.40B, and earnings-per-share to 21-cents (up from 20), or 26-cents if excluding stock option costs. Lastly, an early outlook on fiscal 2008 has Activision predicting an intake of $1.6B.
2/7/2007 Arnold Katayev