Activision Blizzard (Nasdaq: ATVI) reported earnings on Feb. 7. Here are the numbers you need to know.

The 10-second takeaway
For the quarter ended Dec. 31 (Q4), Activision Blizzard whiffed on revenues and beat expectations on earnings per share.

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

Margins increased across the board.

Revenue details
Activision Blizzard notched revenue of $1.77 billion. The 22 analysts polled by S&P Capital IQ hoped for revenue of $2.44 billion on the same basis. GAAP reported sales were 26% higher than the prior-year quarter's $1.41 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 $0.78. The 24 earnings estimates compiled by S&P Capital IQ predicted $0.72 per share. GAAP EPS of $0.31 for Q4 were 288% higher than the prior-year quarter's $0.08 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 61.4%, 1,270 basis points better than the prior-year quarter. Operating margin was 27.4%, 2,470 basis points better than the prior-year quarter. Net margin was 20.0%, 1,300 basis points better than the prior-year quarter.

Looking ahead
Next quarter's average estimate for revenue is $710.4 million. On the bottom line, the average EPS estimate is $0.10.

Next year's average estimate for revenue is $4.56 billion. The average EPS estimate is $0.97.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 6,944 members out of 7,173 rating the stock outperform, and 229 members rating it underperform. Among 1,511 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 1,475 give Activision Blizzard a green thumbs-up, and 36 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 $15.08.

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