Activision Blizzard, Inc.

Fri. February 06, 2009; Posted: 07:10 AM

Feb 06, 2009 (Zacks Investment Research via COMTEX) -- ATVID | Quote | Chart | News | PowerRating -- Activision Blizzard, Inc. ( (ATVI) has momentum heading into its next earnings announcement and analysts and investors look for explosive growth through 2009.

Company Description

Activision Blizzard, Inc. is a video game publisher with leading market positions across all categories of the rapidly growing interactive entertainment software industry. Activision Blizzard's portfolio includes best-selling video games such as Guitar Hero, Call of Duty, and others.

Blizzard Entertainment's World of Warcraft has a cult following of roughly 12 million subscribers around the globe. The company has offices on every continent, with the exceptions of Antarctica and Africa.

Explosive Growth

The gaming company is expected to announce year-end results on Feb 11 that will include earnings per share of just 13 cents, less than a quarter of last years number, 55 cents. However, estimates for 2009 are now 63 cents, a growth rate of 366%.

Analysts have raised their guidance for 2009 heading into the announcement, from 52 cents to 61 cents over the past 30 days.

Excellent History

Activision has a great history of beating Wall Street estimates. In the past 19 quarters the company has fallen short of expectations just once, met once, with the balance being positive surprises.

Over the past 4 quarters actual numbers have averaged more than double the estimates.

A Good Value to Boot?

Shares of ATVI are trading near 14.5 times earnings, slightly above the industry average of 13.1 times. However, the long-term growth rate of almost 22% brings the PEG ratio to just 0.7.

The Chart

The stock will look to ride the recent momentum through resistance near $10 per share on the earnings news coming next week. Take a look at the chart below.

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