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Activision Blizzard Falls on Outlook

Shares in Activision Blizzard Inc., the parent company of Irvine-based Blizzard Entertainment, fell after reporting fourth-quarter outlook that missed analyst expectations.

The company forecast adjusted fourth-quarter earnings of 63 cents a share on revenue of $2 billion, while analysts surveyed by FactSet had forecast earnings of $1.11 a share on revenue of $2.62 billion.

The company has been benefiting from increased gaming activities with people staying at home during the coronavirus pandemic.

For the third quarter, the company said revenue was $1.95 billion, better than the $1.8 billion Activision previously forecast on Aug. 4. Quarterly basic earnings per share were 78 cents, beating the company’s internal estimate of 64 cents.

Separately, Activision Blizzard said that “World of Warcraft: Shadowlands” will be released on Nov. 23, after its scheduled release of late this month was delayed for “fine-tuning and polish.”

Shares in Activision Blizzard fell 5.9% in after-hours trading to $73.17 apiece.

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Kevin Costelloe
Kevin Costelloe
Tech reporter at Orange County Business Journal
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