Activision Blizzard, Inc. (NASDAQ:ATVI) share price went up over 11%, swelling by $1.35 in a single session in the wake of the company's Q4 results announcement last week.
ATVI reported earnings per share of $.78, outpacing Wall Street estimates by 6 cents. Quarterly revenue is also a refreshing $.16 billion ahead of analyst predictions. Activision landed its Call of Duty and Skylanders franchises among the top 3 bestselling games of the year. Skylanders alone accounted for over $1 billion in sales.[banner]
The market responded enthusiastically and after gapping up on the day following the announcement, ATVI shares continued their steady climb. Investors seemed unfazed by the dampened outlook on the current quarter as well as fiscal 2013 as a whole. The company announced an EPS projection for 2013 that is 17 cents below estimates and yearly revenue that is $.38 billion short of the consensus.
Surfacing discussions of China's video game console ban possibly coming to an end in the foreseeable future, an event that could significantly shuffle the cards of the game industry's big players, were largely dismissed by a market research firm focused on the Asian gaming sector, Wired magazine reports. Lisa Hanson, the firm's founder stated that rumors existed only because a media outlet started them in the first place and that officials have been making roundabout statements on the matter for a while. Time will tell whether the Chinese government is really going to take steps towards lifting the decade-long ban or not.
ATVI shares are up over 3% in early trading.