Earnings and Growth Analysis : Activision Blizzard (NASDAQ:ATVI)

Earnings results for Activision Blizzard (NASDAQ:ATVI)

Activision Blizzard, Inc is expected* to report earnings on 05/04/2021 after market close. The report will be for the fiscal Quarter ending Mar 2021. According to Zacks Investment Research, based on 8 analysts’ forecasts, the consensus EPS forecast for the quarter is $0.65. The reported EPS for the same quarter last year was $0.54.

Activision Blizzard last released its quarterly earnings data on February 3rd, 2021. The reported $1.21 earnings per share for the quarter, topping the consensus estimate of $1.18 by $0.03. The firm had revenue of $3.05 billion for the quarter, compared to analysts’ expectations of $2.84 billion. Activision Blizzard has generated $2.08 earnings per share over the last year and currently has a price-to-earnings ratio of 31.9. Activision Blizzard has confirmed that its next quarterly earnings report will be published on Tuesday, May 4th, 2021. Activision Blizzard will be holding an earnings conference call on Tuesday, May 4th. Interested parties can register for or listen to the call using this link.

Analyst Opinion on Activision Blizzard (NASDAQ:ATVI)

28 Wall Street analysts have issued ratings and price targets for Activision Blizzard in the last 12 months. Their average twelve-month price target is $103.59, predicting that the stock has a possible upside of 13.59%. The high price target for ATVI is $125.00 and the low price target for ATVI is $66.00. There are currently 3 hold ratings and 25 buy ratings for the stock, resulting in a consensus rating of “Buy.”

Activision Blizzard has received a consensus rating of Buy. The company’s average rating score is 2.89, and is based on 25 buy ratings, 3 hold ratings, and no sell ratings. According to analysts’ consensus price target of $103.59, Activision Blizzard has a forecasted upside of 13.6% from its current price of $91.19. Activision Blizzard has been the subject of 14 research reports in the past 90 days, demonstrating strong analyst interest in this stock.

Dividend Strength: Activision Blizzard (NASDAQ:ATVI)

Activision Blizzard has a dividend yield of 0.51%, which is in the bottom 25% of all stocks that pay dividends. Activision Blizzard has only been increasing its dividend for 1 years. The dividend payout ratio of Activision Blizzard is 22.60%. This payout ratio is at a healthy, sustainable level, below 75%. Based on earnings estimates, Activision Blizzard will have a dividend payout ratio of 14.24% next year. This indicates that Activision Blizzard will be able to sustain or increase its dividend.

Insiders buying/selling: Activision Blizzard (NASDAQ:ATVI)

In the past three months, Activision Blizzard insiders have sold more of their company’s stock than they have bought. Specifically, they have bought $0.00 in company stock and sold $5,913,049.00 in company stock. Only 1.13% of the stock of Activision Blizzard is held by insiders. 85.77% of the stock of Activision Blizzard is held by institutions. High institutional ownership can be a signal of strong market trust in this company.

Earnings and Valuation of Activision Blizzard (NASDAQ:ATVI

Earnings for Activision Blizzard are expected to grow by 2.48% in the coming year, from $3.22 to $3.30 per share. The P/E ratio of Activision Blizzard is 31.88, which means that it is trading at a more expensive P/E ratio than the market average P/E ratio of about 24.04. The P/E ratio of Activision Blizzard is 31.88, which means that it is trading at a less expensive P/E ratio than the Consumer Discretionary sector average P/E ratio of about 43.99. Activision Blizzard has a PEG Ratio of 1.72. PEG Ratios above 1 indicate that a company could be overvalued. Activision Blizzard has a P/B Ratio of 5.47. P/B Ratios above 3 indicate that a company could be overvalued with respect to its assets and liabilities.

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