2 Big Earnings: Activision Blizzard (NASDAQ:ATVI) & Kraft Foods (NASDAQ:KFT)

Activision Blizzard, Inc.(NASDAQ:ATVI) reported non-GAAP profit of 20 cents a share beating its own guidance of 10 cents analyst estimates of 12 cents a share.

Revenues of the company were at $1.054 billion, up from $699 million in the year-ago quarter, the company said, lifting its full year revenue forecast to $4.63 billion and profit to 99 cents a share, compared to its earlier guidance of $4.53 billion and 95 cents. This is also higher than the street estimates of 98 cents earnings on $4.58 billion in revenues.

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However Activision's outlook for third quarter disappointed with the company projecting profit at 7 cents on revenues of $690 million compared to Street estimates of 12 cents on $728.1 million.

Chief Executive, Bobby Kotick said in a statement, "“While we are increasing our financial outlook for full year 2012, we remain cautious given economic uncertainty, risks to consumer spending especially during the holiday season and the recognition that the majority of our key franchise launches are still ahead of us."

Activision's shares fell 3.80% to $11.33 in early session.

Portland-based Kraft Foods Inc(NASDAQ:KFT ) reported a second quarter profit 5 percent higher than a year earlier on higher price realisation that offset rising raw material costs and stronger dollar.

Kraft, like many exporters, has been hit by a strengthening dollar, while raw material prices continue to rule high. The only way that companies like Kraft can maintain margins is to raise their sale price.

"We delivered a very solid performance in a difficult environment and I believe we are on track to achieve our goals for the year," CEO Irene Rosenfeld said.

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Kraft earned $1.03 billion, or 58 cents per share, for the quarter ended June 30. That's up from $976 million, or 55 cents per share, earned last year. After adjusting for spin-off and other one-time costs, it earned 68 cents per share versus 62 cents. That's above the 66 cents a share analysts polled by FactSet had anticipated.

Revenue fell 4 percent to $13.29 billion for the period, below the $13.29 billion expected by analysts.

Shares of KFT are up 4.25% to $40.60 in first hour on Friday.