Shares in videogame developer Activision Inc. gained more than 3 percent Wednesday afternoon after the company raised its forecast for the third quarter, citing strong sales of its slate of videogame titles for the holiday season.

The Agoura hills-base company said in a statement that it was lifting its revenue forecast for its third fiscal quarter to $1.38 billion, compared to its previous forecast of $1.23 billion.

The company also said it now expects earnings of 76 cents a share, compared to its initial estimation of 66 cents a share.

Activision makes videogame franchises “Guitar Hero” and “Call of Duty.”

Shares in Activision closed up 11 cents Wednesday but continued to gain 3.3 percent in after-market trading to $27.66.