Activision Blizzard (Nasdaq: ATVI) reported earnings on May 9. Here are the numbers you need to know.

The 10-second takeaway
 For the quarter ended March 31 (Q1), Activision Blizzard beat expectations on revenues and beat expectations on earnings per share.

Compared to the prior-year quarter, revenue shrank significantly and GAAP earnings per share shrank significantly.

Gross margins grew, operating margins dropped, net margins dropped.

Revenue details
 Activision Blizzard reported revenue of $587.0 million. The 19 analysts polled by S&P Capital IQ looked for revenue of $556.6 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $1.45 billion.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
 EPS came in at $0.06. The 21 earnings estimates compiled by S&P Capital IQ forecast $0.04 per share. GAAP EPS of $0.33 for Q1 were 21% lower than the prior-year quarter's $0.42 per share.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Margin details
 For the quarter, gross margin was 69.8%, 110 basis points better than the prior-year quarter. Operating margin was 43.8%, 400 basis points worse than the prior-year quarter. Net margin was 32.8%, 190 basis points worse than the prior-year quarter.

Looking ahead
 Next quarter's average estimate for revenue is $824.5 million. On the bottom line, the average EPS estimate is $0.15.

Next year's average estimate for revenue is $4.59 billion. The average EPS estimate is $0.98.

Investor sentiment
 The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,963 members out of 7,177 rating the stock outperform, and 216 members rating it underperform. Among 1,485 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,445 give Activision Blizzard a green thumbs-up, and 40 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Activision Blizzard is outperform, with an average price target of $15.87.

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