The Zacks Analyst Blog Highlights: Electronic Arts, Activision Blizzard, Glu Mobile, King Digital and Take-Two Interactive

CHICAGO, Aug. 15, 2014 /PRNewswire/ -- Zacks.com announces the list of stocks featured in the Analyst Blog. Every day the Zacks Equity Research analysts discuss the latest news and events impacting stocks and the financial markets. Stocks recently featured in the blog include the Electronic Arts (Nasdaq: EA-Free Report), Activision Blizzard (Nasdaq: ATVI-Free Report), Glu Mobile (Nasdaq: GLUU-Free Report), King Digital (NYSE: KING-Free Report) and Take-Two Interactive (Nasdaq: TTWO-Free Report).

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

Here are highlights from Thursday's Analyst Blog:

Video Game Industry Led by EA, Activision

The Video Game Industry reported better-than-expected earnings beat ratio in the quarter ended Jun 30, 2014. Both Electronic Arts (Nasdaq: EA-Free Report) and Activision Blizzard (Nasdaq: ATVI-Free Report) posted strong earnings beats this quarter. This was primarily due to higher demand for games on new consoles continuing growth in mobile game sales.

EA benefited from robust revenue growth driven by higher digital and mobile sales. Robust performance from Call of DutyWorld of Warcraft and Diablo III helped Activision Blizzard to report better quarterly results.

Among mobile game developers Glu Mobile (Nasdaq: GLUU-Free Report) reported an impressive quarter primarily driven by popularity of the Kim Kardashian: Hollywood game. However, the company issued a cautious gross margin outlook for the third quarter due to higher spending.

Candy Crush-maker King Digital (NYSE: KING-Free Report) touched a 52-week low of $13.65 on Aug 13, after it reported weak revenue growth in the second quarter. The company also provided lackluster guidance for fiscal 2014.

Overall, the video-game industry revenue growth in the quarter ended Jun 30remained lackluster. Lack of new games from EA, Activision and Take-Two will continue to hurt top-line growth in the upcoming quarters.

Further, both EA and Take-Two Interactive (Nasdaq: TTWO-Free Report) delayed their new game launches (Battlefield and Evolve re-scheduled in 2015), which will negatively impact video-game sales. However, this will benefit Activision Blizzard, which is set to release Destiny and Call of Duty: Advanced Warfare in the upcoming holiday season.

Not much is expected from mobile game-makers like Glu and King Digital, who have yet to show strength in their overall product portfolio. Till now, they have been more of a one-hit game company. King Digital recently admitted that it is finding it difficult to replicate the success of Candy Crush with a new game.

Today, Zacks is promoting its ''Buy'' stock recommendations. Get #1Stock of the Day pick for free.

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