Activision seen posting solid 1Q results, boosted by ‘Call of Duty,’ other games

Earnings Preview: Activision Blizzard

AP () — — Activision Blizzard Inc. reports second-quarter results on Thursday after the market closes.

WHAT TO WATCH FOR: After “lackluster performances” from its game launches in the first half of the year, Activision’s release slate will improve significantly in the second half, said Wedbush Morgan analyst Michael Pachter. Activision said Wednesday that its highly anticipated “StarCraft II” sold more than 1 million copies on July 27, the day it launched, becoming the best-selling PC game of 2010.

With millions of gamers playing “Call of Duty” and others online months after buying the game, charging for multiplayer content represents a big business opportunity for Activision.

Pachter expects the company to unveil plans to monetize such in “Call of Duty: Black Ops,” ”StarCraft II” and other games before the end of the year.

WHY IT MATTERS: Activision sells some of the world’s best-known video games, which have become mainstream entertainment on par with movies and music. How well its games do can reflect sentiment across a broad range of consumers.

WHAT’S EXPECTED: Analysts, on average, are expecting a profit of 5 cents per share on revenue of $719.8 million, according to a survey by Thomson Reuters.

LAST YEAR’S QUARTER: Activision earned $189 million, or 14 cents per share, on revenue of $981 million. Adjusted earnings were 8 cents per share and adjusted revenue totaled $724 million, surpassing Wall Street’s expectations.