ATVI - Embedded Expectations Analysis - 2018 10 04
Activision Blizzard, Inc. (ATVI:USA) currently trades above historical averages relative to UAFRS-based (Uniform) Earnings, with a 23.5x Uniform P/E, implying bullish expectations for the firm. However, management has concerns about poor Blizzard results, and their focus on their incubation pipelineSpecifically, management may be concerned about their ability to maintain strong results through H2 2018, and to leverage external resources to improve game play experiences. Moreover, they may have concerns about the sustainability of growth in King active users and increased engagement in battle royale style games. Furthermore, they may be concerned about the potential for continued declines in Blizzard revenue and operating margin, and may be exaggerating their focus on expanding their incubation pipeline. Lastly, they may be exaggerating their commitment to their audience and the engagement of their community members
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.
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