Ahead of the Bell: Activision to post 3Q results

NEW YORK - Activision Blizzard Inc., the video game publisher behind the popular "Guitar Hero" game, is scheduled to post its third-quarter results after the closing bell Wednesday.

This is the first quarter of combined results for the new company, which was formed in July when Paris-based conglomerate Vivendi SA bought a majority stake in Activision and combined it with its games unit. The company moved from a fiscal year to a regular calendar year after the acquisition.

Analysts, on average, are expecting a profit of 4 cents per share on sales of $632.1 million, according to a poll by Thomson Reuters.

Rival Electronic Arts Inc. lowered its full-year profit outlook last week, citing the strengthening dollar and the delay of the latest "Harry Potter" game, though it kept its revenue forecast intact. EA also announced layoffs and said it saw a "slowdown at retail" in October.

This doesn't bode well for the video game industry, which makes most of its money during the holiday season. Still, analysts are generally positive on the sector and especially on Activision.

"While economic conditions have pressured consumer spending and consumer-oriented stocks, our research continues to show relative strength in video game sales, and we believe Activision remains the leading U.S. interactive entertainment company," wrote Soleil Securities analyst Daniel Ernst in a note to investors. He rates Activision "Buy."

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