Boston, MA 02/10/2014 (wallstreetpr) – Activision Blizzard, Inc. (NASDAQ:ATVI) has been bullish in the market after posting excellent results for the fourth quarter and full year (F2013). The better than expected revenue and net income seem to have given Activision Blizzard, the much needed push in the stock exchange as its stock continue being bullish and performing better than expected.
Activision Blizzard, Inc. (NASDAQ:ATVI)’s stock has reacted positively after the announcement of the full year results and Q4 four earnings jumping by nearly 8% to hit a high mark of $18.5 per share. The company on the other hand reported below par expected guidance for F2014 despite the massive growth expected as a result of its gaming pipeline, being led by Call of Duty Skylanders and Destiny.
Activision Blizzard buys its way from Vivendi
Activision Blizzard, Inc. (NASDAQ:ATVI) has been performing well in the market evident by its completion of a full share buyback from its former majority shareholder Vivendi SA. The buyback involved a purchase of 429 shares for a total amounted of $5.8 billion. Its cash balance has been massively boosted in the recent past with its CEO Brian Kotick and Co Chairman Brian Kelly having pumped in an extra $2.3 billion through the purchase of 172 million shares. The management is the majority shareholder holding 745 million shares for a majority stake of 23% in the company.
Activision Blizzard valuation in the market
Activision Blizzard, Inc. (NASDAQ:ATVI) commands a market capitalization of $12.8 billion with a similar enterprise valued at $13 billion. Activision as of its recent performance in the market commands an EV/EBITDA of x8.9 and a P/E of x12.7. During the fiscal year 2013, the company was able to generate a free cash flow of $1.2 billion equating a free cash flow yield of 9.3% making it one of the top gaming companies with the highest cash flow margins.
Activision Blizzard WoW subscriber soar
This are some of the best times in the market for the gaming guru company which recorded the addition of new 200,000 subscribers for its World of Warcraft franchise. The increase in subscribers has been attributed to the excitement about the addition of a new chapter in the game. Activision Blizzard, Inc. (NASDAQ:ATVI) is planning for a strong product line in F2014 that should see its revenue increase. There has also been a rumor about the addition of new installments forWoW Call of Duty and Diablo.
Activision Blizzard, Inc. (NASDAQ:ATVI) closed the week at a high of $19.64 a share a massive improvement of 14.39%
