Activision stock rises after revenue beat

Activision Blizzard Inc. shares rose in the extended session Thursday after the company beat revenue expectations but missed on earnings. The videogame maker’s shares rose 3.3% to $68 after hours. Activision reported fourth-quarter losses of $584 million, or 77 cents a share, compared with net income of $254 million, or 33 cents a share, in the year-ago period. Fourth-quarter losses included a charge of $1.03 a share due to changes in the U.S. tax code; excluding the tax-related charge, fourth-quarter earnings were 27 cents a share. Adjusted earnings were 49 cents a share. Revenue rose to $2.04 billion from $2.01 billion in the year-ago period. Analysts surveyed by FactSet had estimated 17 cents a share on revenue of $1.88 billion. For the fourth quarter, analysts model earnings of 53 cents a share on sales of $1.82 billion; Activision expects first-quarter earnings of 47 cents a share on revenue of $1.82 billion; it expects adjusted earnings of 65 cents a share. Activision stock has climbed 71% in the past year, as the S&P 500 index rose 17%.

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