Activision just released Call of Duty: Modern Warfare 3, and despite all the smack talk I'm hearing about how Battlefield 3 has better graphics, I would like to point out that Modern Warfare 3 still has better gameplay and is a better game overall.
Now, with that out of the way, let's look at Activision the company. It just reported that it expects 2011 revenue of $4.25B and EPS of $0.85, above consensus of $4.11B and $0.79, and that 44% of its revenue now come from online subscriptions. It also reports a "stronger than expected consumer response" to Call of Duty: MW3. Take that EA.
Activision has solid financials. The average EPS growth of its last 3 quarters is 23%, while it delivered an earnings surprise that was 250% above analyst estimates for the past quarter. Its 3 Year EPS Growth Rate is a solid 17%, while its 3 Year Sales Growth Rate is 36%. It has a Debt/Equity Ratio of 0%, and its Annual Pre-Tax Margin is 31.3%.
Now with that said, MW3 could shape up to be a probable catalyst for Activision. It is one of Activision's hallmark products as well as one of its most profitable. With a potential catalyst and sound financials, Activision is looking like a good bet.