What to Expect From Activision Blizzard’s Q3 Earnings

Video game titan Activision Blizzard will announce its earnings this week, but will the company beat estimates after a post-pandemic dip?

Nov. 1, 2021

Activision Blizzard (NASDAQ: ATVI) is one of the world’s leading video game producers. It houses three main divisions:

  • Activision, maker of the ‘Call of Duty’ franchise
  • Blizzard, most well known for its online multiplayer game ‘World of Warcraft’
  • King Digital, maker of the infamous mobile game ‘Candy Crush’

Down almost 12% this year to date, investors will be hoping for a more positive earnings call as the company looks to navigate a world reemerging from the pandemic –though growth has been solid for the company, with its stock price up over 90% in the past five years. A post-pandemic dip was always likely as people return to more outdoor pursuits, but investors will be eager to hear about Activision’s plans for the future.

When is Activision Blizzard’s earnings date?

Activision Blizzard reports earnings for the third quarter of 2021 on Tuesday, November 2 at 4:30 PM Eastern Time.

How can I listen to Activision Blizzard’s earnings call?

To listen to the call and to access the transcript, as well as the shareholder’s letter and the financial statements for the quarter, all you need to do is go to Activision Blizzard’s investor relations page.

What to expect from Activision Blizzard’s earnings?

Investors will be eager to see just how much of an effect the general reopening of the global economy will have on Activision’s numbers. Personal gaming spiked during the pandemic and Activision saw huge revenue increases throughout 2020 as a result. Investors will be hoping for this growth to be sustained throughout 2021, especially as we enter into the holiday season – a typically lucrative time of year for video game producers.

As global supply chain issues continue to devastate companies worldwide, Activision investors will be keeping a close eye on the company’s sales numbers. Supply shortages, particularly regarding gaming consoles, will have a detrimental effect on revenue. Product sales were already lagging in Q2 so investors will be hoping that more consoles being distributed in Q3 will have a positive effect on sales of games.

Activision was also mired in controversy earlier this year when the California Department of Fair Employment and Housing filed a lawsuit against the company. The case revolved around the sexual harassment and discrimination of female employees within the company. The announcement of this lawsuit sent share prices plummeting in July, so the company will be hoping a positive earnings report can distract from this huge concern. Shareholders will be sure to keep an eye out for any details on how the company plans to avoid such incidents again in the future.

Activision Blizzard is certainly a solid option for investors. Growth of over 90% in the last five years and ownership of some of the world’s most popular game franchises have the company set up for continued long-term success. Questions still remain around how the company is run internally, however, and investors will also be hoping for insight into how the company hopes to navigate ongoing supply chain uncertainty.
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