NEW YORK (TheStreet) -- Activision Blizzard (ATVI) - Get Report stock is plunging 15.96% to $25.65 in after-hours trading on Thursday after the video game developer and publisher reported lower than expected results for the 2015 fourth quarter.

The Santa Monica, CA-based company posted earnings of 83 cents per share on revenue of $2.12 billion for the last quarter of 2015. Analysts had estimated earnings of 86 cents per share on $2.2 billion in revenue.

Revenue was down 4% year-over-year, but revenue from the higher margin digital channel increased 14% to a record $780 million. Revenue from the Call of Duty franchise grew by double-digits following the release of Call of Duty: Black Ops III.

Activision Blizzard also announced its 2016 first quarter guidance, which includes King Digital Entertainment (KING), the mobile gaming company that Activision Blizzard agreed to acquire in a $5.9 billion transaction, which will close later this month.

Earnings are expected to be 11 cents per share for the first quarter of 2016, below estimates of 18 cents per share. Revenue guidance was set at $800 million, above expectations of $744.79 million.

Separately, Activision Blizzard has a "buy" rating and a letter grade of B at TheStreet Rating because of the company's revenue growth, largely solid financial position with reasonable debt levels by most measures, notable return on equity, reasonable valuation levels and solid stock price performance.

You can view the full analysis from the report here: ATVI

TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.

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