Guide disappoints, narrative should improve in H2
ATVI reported Q1 results before the close, after a third party had pre-released incorrect numbers. Q1 adjusted EPS of 38c was 7c ahead of guidance, in line with typical outperformance. However, the stock fell ~2% as Q2 guidance of 31c disappointed versus the Street's 49c, even accounting for the usual conservatism. But a light guide was not surprising given the well-known Fortnite headwinds in a release-light quarter. CY18 guidance was increased a touch and the release slate narrative should improve heading into H2. Maintain Overweight.Activision Blizzard is a global developer and publisher of interactive entertainment content and services. The company's segments are: Activision Publishing, Inc., which is a global developer and publisher of interactive software products and entertainment content, particularly for the console platform; Blizzard Entertainment, Inc., which is a global developer and publisher of interactive software products and entertainment content, particularly for the personal computers platform; and King Digital Entertainment, which is a global developer and publisher of interactive entertainment content and services, particularly for the mobile platform, including for Google Inc.'s Android and Apple Inc.'s iOS.
Formed in 2003 by an established team from Cazenove, one of the most respected investment banks in the UK, Atlantic Equities conducts and publishes fundamental, bottom up research on mid and large cap US companies.
Atlantic provide order execution through a wide range of DMA products and algorithmic trading suites.
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