Activision Blizzard, Inc. (NASDAQ: ATVI) reported its fourth-quarter financial results after the markets closed on Thursday. The company had $0.83 in earnings per share (EPS) on $2.12 billion in revenue. That compared to consensus estimates from Thomson Reuters of $0.86 in EPS on revenue of $2.20 billion. The same period from the previous year had $0.94 in EPS on $2.21 billion in revenue.

During this quarter, the company announced that it would acquire King Digital Entertainment for roughly $5.9 billion.

In terms of guidance, Activision Blizzard expects first quarter EPS to be $0.11 and revenues to total $800 million. There are first quarter consensus estimates that call for $0.18 in EPS on $744.79 million in revenue.

The company also announced that its board of directors declared a cash dividend of $0.26 per common share, payable on May 11, to shareholders of record at the close of business on March 30, which represents a 13% increase from the cash dividend paid in 2015.

Bobby Kotick, CEO of Activision Blizzard, commented on earnings:

With our expected closing of the acquisition of King Digital later this month, we will have the largest game network in the world, with over 500 million users playing our games every month. Our entertainment franchises, including Call of Duty, World of Warcraft and soon Candy Crush, will reach people on mobile, console and desktop devices in almost every country in the world. This gives us the opportunity to engage our global audiences and create revenue streams from content and services. Our esports initiatives, enhanced by our recent acquisition of Major League Gaming, allow us to reward our players around the world for their dedication and investment in our games. We expect to generate approximately $6.25 billion in revenues and over $2.0 billion of operating income in 2016 and we will have over 9,000 of the most talented people making, marketing and selling great games around the world.

On the books, the company’s cash and cash equivalents totaled $1.82 billion at the end of the fourth quarter compared to $4.85 billion in the same period from last year.

Shares of Activision Blizzard closed Thursday at $30.52, with a consensus analyst price target of $42.06 and a 52-week trading range of $22.28 to $39.93. Following the release of the earnings report, the stock was down 16% at $25.52 in the after-hours trading session.

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