Activision Blizzard Q3 earnings preview: All eyes on Microsoft deal updates

Activision Blizzard (NASDAQ:ATVI) is scheduled to announce Q3 earnings outcomes on Monday, Nov. 7, after market shut.

The consensus EPS estimate is $0.50 (-30.6% Y/Y) and the consensus income estimate is $1.71B (-9% Y/Y).

During the last 2 years, ATVI has overwhelmed EPS estimates 63% of the time and income estimates 75% of the time.

During the last 3 months, EPS estimates have seen 6 upward revisions and 16 downward. Income estimates have seen 8 upward revisions and 10 downward.

Q2 recap:

• Shares of the online game maker have been flat after its bookings topped expectations in Q2 and working earnings noticed broad sequential positive factors.
• Benchmark famous the stable outcomes and vital H2 sport pipeline that ought to function catalysts for development in This autumn and FY23.

Updates on Microsoft deal:

• Microsoft (MSFT) reportedly didn’t provide any treatments in Europe’s antitrust assessment of its deliberate $69B buy of Activision (ATVI). The European Fee set a provisional deadline of Nov. 8 to determine on the deal.
• The U.Okay.’s antitrust regulator, in its in-depth assessment of the deal, is taking a look at whether or not Microsoft (MSFT) will make Name of Obligation an Xbox unique. It’s conducting section 2 assessment of the deal and plans to offer provisional findings in Jan.
• Microsoft, in the meantime, raised issues in regards to the affect of Sony (SONY) on U.Okay. regulators, saying it considerably exaggerated the significance of Name of Obligation.
• Australia’s antitrust regulator delayed its determination on the deal, pending receipt of data, however Brazil’s antitrust regulator permitted the deal with out circumstances.
• The U.S. FTC’s determination on the deal might reportedly are available in later this month.

SA contributor Vera Glebova projected 80% probability of the Microsoft (MSFT) deal being cleared in a latest bullish evaluation.

Shares of Activision (ATVI) gained 6.5% YTD, outperforming the S&P 500 and Nasdaq 100 indices by a large margin.