Activision Blizzard misses Q1 EPS by 6 cents.

Activision Blizzard, one of the world’s largest video game publishers, has reported a disappointing first quarter earnings report. The company missed its earnings per share (EPS) target by 6 cents, causing its stock to drop by over 5% in after-hours trading.

The company’s Q1 EPS was $0.84, falling short of the expected $0.90. This was due to lower-than-expected revenue from its popular franchises, including Call of Duty and World of Warcraft. Activision Blizzard’s revenue for the quarter was $1.79 billion, which was also lower than the expected $1.82 billion.

Activision Blizzard’s CEO, Bobby Kotick, acknowledged the company’s disappointing results in a statement. “While we delivered strong results in our Call of Duty and Candy Crush franchises, we did not achieve our full potential,” he said. “We are taking steps to address this and remain confident in our ability to deliver strong results in the future.”

The company’s stock has been on a rollercoaster ride over the past year, with highs of $104.53 and lows of $62.25. Despite the recent drop, the stock is still up over 20% from its low point in March 2020.

Analysts are divided on the future of Activision Blizzard. Some believe that the company’s strong franchises and loyal fan base will help it bounce back from this setback. Others are concerned about the company’s ability to compete in an increasingly crowded market, with new players like Google and Amazon entering the gaming industry.

One thing is clear: Activision Blizzard will need to make some changes if it wants to stay competitive. The company has already announced plans to release more mobile games and expand its esports offerings. It remains to be seen whether these efforts will be enough to turn things around.

In the meantime, investors will be watching closely to see how Activision Blizzard performs in the coming quarters. The company’s next earnings report is scheduled for August 3rd, and all eyes will be on whether it can meet its targets and regain investor confidence.