Activision expected to swing to profit on strong game sales

May 08, 2008 13:47:52

 

SAN FRANCISCO (MarketWatch) -- Activision Inc. is expected to swing to a profit when it reports results for its fourth fiscal quarter Thursday, thanks to strong sales of video game titles such as "Call of Duty 4" and "Guitar Hero III."

The outlook for the June quarter, however, is less clear, as the video game publisher (ATVI) faces difficult comparisons with the same period last year.

For the March period, Activision is expected to report an 18% gain in revenue over the same period last year. Wall Street is looking for revenue of $369.1 million, according to consensus estimates from Thomson Financial.

Earnings are forecast to come in at 5 cents a share, compared to a loss of 4 cents a share for the previous quarter, excluding the effects of stock-options.

The recent quarter's results were driven primarily by strong sales of "Call of Duty 4: Modern Warfare," a war-based shooter title that was the top-selling game in North America for four months running, according to data from NPD Group.

In addition, the company has continued to squeeze strong numbers out of its mega-popular "Guitar Hero" franchise. "Guitar Hero III: Legends of Rock" was the first of the series made available for the Nintendo Wii, and that version alone sold more than 725,000 units during the March quarter, according to NPD data.