Activision Blizzard (Nasdaq: ATVI ) reported earnings on Aug. 2. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q2), Activision Blizzard crushed expectations on revenue and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue improved significantly and GAAP earnings per share shrank significantly.
Margins dropped across the board.
Activision Blizzard booked revenue of $1.05 billion. The 20 analysts polled by S&P Capital IQ hoped for a top line of $837.9 million on the same basis. GAAP reported sales were 6.2% lower than the prior-year quarter's $1.15 billion.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at $0.20. The 22 earnings estimates compiled by S&P Capital IQ predicted $0.12 per share. GAAP EPS of $0.16 for Q2 were 45% lower than the prior-year quarter's $0.29 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 65.6%, 450 basis points worse than the prior-year quarter. Operating margin was 21.1%, 1,990 basis points worse than the prior-year quarter. Net margin was 17.2%, 1,200 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $735.0 million. On the bottom line, the average EPS estimate is $0.13.
Next year's average estimate for revenue is $4.60 billion. The average EPS estimate is $0.96.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,987 members out of 7,206 rating the stock outperform, and 219 members rating it underperform. Among 1,366 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,324 give Activision Blizzard a green thumbs-up, and 42 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 $15.68.
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