Activision Q3 Just Beats Market Estimates, Lowers Guidance For 2004

Net revenues came in at $378.7 million, up from $371.3 million last year, while net income was up 13.3% to $44.3 million (63 cents per share). The company just beat analysts' expectations: the Wall Street consensus was that the company would report earnings of 59 cents per share on revenue of $365.49 million. The company released 20 new games during the quarter, including Tony Hawk's Pro Skater 4, X-Men: Next Dimension, Minority Report, Star Trek: Star Fleet Command III and Disney's Tarzan. The first nine months of the fiscal year were very strong for the company, breaking company records. Net revenues hit $739.1 million, up 18.9% over last year, and net income increased 79% to $74.1 million. Unfortunately, that good news was offset by Activision's announcement that it was lowering guidance for fiscal 2004. Whereas it had earlier expected full-year earnings of 80 cents a share and sales of $823 million, it now believes that it will see 70 cents a share and sales of $750 million.