After Thursday's close, video game maker Activision Inc. reported an increased net loss in its latest quarter (4Q07), but increased revenue guidance to above Street expectations. The company reported a preliminary net loss of $14.4 million ($0.05/share), vs. a loss of $0.03 cents a share in the year-earlier period. Excluding stock-options related charges, EPS was -$0.04. The company is currently delinquent in its regulatory filings due to options backdating misconduct. Revenue jumped 66% to $313 million. Thomson Financial consensus estimates were for EPS of -$0.02 on sales of $305.4 million. Looking ahead to its next fiscal year (2008), Activision expects its operating income to more than double, with EPS coming in at $0.55 before expenses, or $0.45 after, on revenue of $1.8 billion. Consensus estimates had been for EPS of $0.55 on sales of $1.72 billion. Shares fell $0.20, or 1.01%, to $19.59 in after-hours action.
Sources: Activision F4Q07 (Qtr End 3/31/07) Earnings Call Transcript, Press Release, MarketWatch, TheStreet.com, AP, Reuters
Commentary: Activision: Stock Slips Despite Expected Huge FY Q4 Revenue Beat • The Impact Of Stock Options Backdating On Corporate Cash • Cramer's Take on ATVI
Stocks/ETFs to watch: Activision (NASDAQ:ATVI). Competitors: Electronic Arts (ERTS), Midway Games (MWY), Take-Two Interactive Software (NASDAQ:TTWO), THQ Inc. (THQI)
Related: ATVI Investor Relations
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