Game On: How to Invest in Video Game Stocks, and What to Expect From Disney

It’s finally Friday…

Activision Blizzard (ATVIGet Report) , Take-Two Interactive (TTWOGet Report) , and Real Money stock of the day Disney (DISGet Report) reported earnings Thursday night. 

Jim Cramer is out this morning, so Jeff Marks, senior portfolio analyst with Cramer’s Action Alerts PLUS charitable trust, is stepping in.

Activision Blizzard Earnings

Activision Blizzard reported earnings after the bell Thursday night.

The video game maker indicated softer current-quarter revenue guidance that overshadowed stronger-than-expected earnings for the three months ending in September, reported TheStreet’s Tony Owusu.

The Santa Monica-based company reported adjusted earnings of 38 cents per share on revenue of $1.21 billion. Analysts were expecting the company to report earnings of 23 cents per share on revenue of $1.16 billion. However, the stock is falling after the company said that it expects net revenue of $2.65 billion. Analysts are expecting the company to report revenue of $2.75 billion in the holiday quarter.

“Our third-quarter results exceeded our prior outlook for both revenue and earnings per share,” said CEO Bobby Kotick. “Recent launches have enabled significant growth in the size of our audiences for our Call of Duty and World of Warcraft franchises.”

Take-Two Also Reported Earnings

Take-Two also reported earnings after the bell Thursday.

The video-game maker offered revenue guidance for the holiday season below analyst estimates, reported TheStreet’s Tom Bemis.

Take-Two said it earned $1.93 a share on sales of $950.5 million in its fiscal second quarter. Analysts surveyed by FactSet had expected it to make $1.70 a share on sales of $926.1 million.

Take-Two projected sales of $860 million to $910 million for its fiscal third quarter. Analysts surveyed by FactSet had been expecting the company to take in $925.2 million.

And Then There Was Disney…

And, yes, Real Money Stock of the Day Disney also reported earnings after the bell Thursday.

Disney beat Wall Street forecasts for its fourth-quarter profits while continuing to ramp up investments ahead of its much-anticipated Disney+ streaming service launch.

Disney said adjusted earnings for the three months ending in September, the company’s fiscal fourth quarter, came in at $1.07 per share, down 27.7% from the same period last year but firmly ahead of the Street consensus forecast of 95 cents per share. Group revenues, Disney said, rose 34% to $19.01 billion, just shy of analysts’ forecasts of $19.04 billion.

“In addition to creating a phenomenal product, we’re supporting the launch of Disney Plus with an unprecedented marketing campaign drawing on every existing connection The Walt Disney Company has with consumers,” CEO Bob Iger told investors on a conference call late Thursday. “It’s a historic effort to raise awareness and drive demand, one that reflects our all-in commitment to the strategic initiatives and our determination to launch big and scale fast.”