Activision's Target Raised on Strong Video Sales

Activision Inc. (ATVI) raised its revenue outlook once again this week, citing strong holiday sales of video games, Guitar Hero III and Call of Duty 4. The company said it now expects sales to reach C$2.45-billion compared with C$2.3-billion previously, while its earnings per share is now forecasted to hit $0.85.

Goldman Sachs analyst Mark Wienkes said this is the fifth time Activision has raised its 2008 revenue target, and told clients, there's probably more in store.

"We believe the company has left upside in setting targets and is likely to beat or raise yet again," the analyst said in a note to clients.

He raised his revenue and earnings estimates higher than Activision's targets, to $2.6-billion and C$1.07 per share, respectively.

Mr. Wienke does not rate Activision shares at the current time.