I just love being in video game stocks that are pretty much recession-proof. Check out this blow-out guidance. This is without the Blizzard numbers coming over yet.
In a statement, the company said it expects first quarter revenue of $650 million, up from its previous view of $500 million. Earnings per share are estimated to range between 16 and 18 cents, a dramatic increase from its earlier expectation of 4 cents.
"Activision's first-quarter stand-alone net revenues and earnings were the highest ever for a non-holiday quarter," said Robert Kotick, President and CEO of Activision Blizzard Inc. "Activision Blizzard is well positioned to exceed the financial goals set for the combined company."
They guided higher by 12-14 cents while there was a Mortgage Crisis, $4 gas, a Credit Crunch, a Bear Market, and the threat of an impending Obama Presidency. That is just nuts!
And just wait until Guitar Hero 4: World Tour ships on October 27 of this year. That thing is going to be like Rock Band with a drums and a microphone and it allows you to make your own songs as well. This game could easily be the best seller for 2008 and it will probably take $180 of my money in order for me to buy the Band Kit with the drums, microphone, and wireless guitar.
I think Activision Blizzard could easily be the #1 video game company in time for the next generation of consoles. I mean with Guitar Hero and WarCraft alone they might have 2 of the most profitable franchises of all time.
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