Earnings Watch: Activision stock slumps after disappointing third-quarter outlook

Activision Blizzard Inc. shares fell more than 3% in the extended session Thursday after the company reported third-quarter guidance that was below consensus analyst estimates.

The videogame maker ATVI, +2.56%   reported second-quarter net income of $328 million, or 43 cents a share, compared with $402 million, or 52 cents a share, in the year-ago period. Adjusted for items such as stock-based compensation, restructuring costs and amortization of intangible items, among other things, earnings were 53 cents a share.

Revenue rose to $1.4 billion from $1.32 billion in the year-ago period. Activision reported bookings of $1.21 billion, versus $1.38 billion in the year-ago period. Bookings are a common financial figure used by videogame companies to capture digital and physical sales of their titles.

Analysts surveyed by FactSet had estimated adjusted earnings of a 26 cents share on bookings of $1.19 billion.

For the third quarter, analysts model adjusted earnings of 40 cents a share on sales of $1.36 billion. Activision said it expects adjusted earnings of 20 cents a share on sales of $1.12 billion.

Activision stock has gained 6.2% this year, with the S&P 500 index SPX, +1.88%   rising 15%.

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