Earnings Previews: Activision Blizzard, Lyft, T-Mobile

More than 1,500 companies are expected to report quarterly earnings this week. Of nine in our watch list for Monday morning, three missed profit estimates and four missed revenue estimates. ON Semiconductor reported a beat on both profits and revenue and raised full-year profit and revenue guidance above prior estimates. Shares traded up about 10% Monday morning.

We already have previewed two companies expected to report results after markets close Monday and one more that has not announced a report date yet, but often chooses this week to report prior quarter results: AMC, Diamondback Energy and NXP Semiconductors.

Our previews of three firms scheduled to report results before markets open Tuesday morning (BP, Pfizer, Under Armour) are also posted.

Here’s a look at three companies scheduled to report results after markets close Tuesday.

Activision Blizzard

At the end of the second quarter, video game producer Activision Blizzard Inc. (NASDAQ: ATVI) had managed to raise its share price by less than 1.5% over the past 12 months. That’s the good news. As of Friday’s closing, Activision’s share price is about 0.6% lower over the past 12 months. For the year to date, the company’s stock price is down more than 16%.

Last week, the company acquired a Barcelona-based mobile game developer, and CEO Bobby Kotick said he would take a pay cut and also end the company’s practice of requiring arbitration for internal harassment and discrimination charges.

Despite its troubles, analysts are virtually unanimously upbeat on the stock. Of 29 brokerages covering the firm, 16 have Buy ratings on the stock and 11 more have a Strong Buy rating. The other two rate the stock a Hold. At a recent price of around $79.70, the upside potential based on a median price target of $110 is 38%. At the high price target of $125, the upside potential is nearly 57%.

Analysts have forecast third-quarter revenue of $1.88 billion, which would be down almost 2% sequentially but up 6.2% year over year. Adjusted earnings per share (EPS) are forecast at $0.70, down 23% sequentially and down one cent year over year. For the full year, current forecasts call for EPS of $3.81, up 8.8%, on sales of $8.77 billion, up 4.1%.

The stock trades at 20.9 times expected 2021 EPS, 18.6 times estimated 2022 earnings and 17.0 times estimated 2022 earnings. The stock’s 52-week range is $71.19 to $104.53, and the company pays an annual dividend of $0.47 (yield of 0.6%).

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