(Reuters) – Activision Blizzard Inc ATVI.O raised its annual adjusted sales forecast on Thursday, betting on strong sales for its upcoming videogame in the blockbuster “Call of Duty” franchise as demand from stay-at-home gamers continues to rise.
The company raised its full-year adjusted revenue forecast to $8.10 billion from $7.63 billion. Analysts had expected adjusted sales of $7.94 billion, according to IBES data from Refinitiv.
Shares of the company, which fell 8% immediately after the results as some analysts viewed the improved forecast as conservative, pared most of the losses and were down marginally after the bell.
“Activision has been typically conservative going into the next quarter. Many stocks are seeing automatic ‘sell the news’ on earnings reports good or bad ahead of elections.