Activision Blizzard: revenue is up despite World of Warcraft losing 1.5

During the Activision Blizzard Inc Q2 earnings call, Morhaime skirted the issue of World of Warcraft’s dwindling subscriber base.

Activision, based in Santa Monica, California, posted quarterly net earnings of $212 million or $0.29 per share, compared with $204 million or $0.28 per share a year ago.

In terms of their products, Activision Blizzard has a few releases in the pipeline. Moreover, with some of the major titles being released in the latter half of the year, we might see further improvement in the segment’s growth. The Company offers games that operate on Xbox One, Xbox 360, Wii U, Wii, PlayStation 4, PlayStation 3, among others. Our audience size and the total amount of time people spend with our franchises continue to grow.

What went right: Higher engagement with Activision’s gaming community led to much better than expected growth on both the topand bottom lines.

Activision said it earned 13 cents a share excluding items, up 117% year over year, on sales of $759 million, up 15%. In the last 50 and 100 days, Activision Blizzard is up 12.99% and up 26.16%, respectively.

What went wrong:Promised stock buybacks didn’t materialize in Q2, though I’m not so sure that’s a bad thing.

(NASDAQ:ATVI) as the shares raised 0.59% to settle at $25.67 in last trading action following opening the session at $25.57.

The company did not make any share repurchases during the second quarter under its $750 million share repurchase authorization ending February 2017.

For calendar year 2015, the company now expects adjusted earnings of $1.30 per share on adjusted revenues of $4.46 billion. The company provided EPS guidance of $1.30 for the period, compared to the Thomson Reuters consensus EPS estimate of $1.23, Market Beat.com reports.

“Our strategic focus on expanding our franchise portfolio with captivating and original new intellectual property, innovating on new platforms, and expanding into new geographies is reflected in our results”, said Bobby Kotick, Chief Executive Officer of Activision Blizzard. Wedbush reaffirmed a outperform rating and establish a $37.00 cost objective on shares of Activision Blizzard in a study report on Wednesday.

Tim Beyers is more board gamer than video gamer, yet still completely fascinated by Twitch. 2,555,040 shares of the firm’s stock were traded. Check out Tim’sweb homeandportfolio holdingsor connect with him onGoogle+,Tumblr, or Twitter, where he goes by@milehighfool. The Motley Fool has a disclosure policy.