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.

Revenue details
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 details
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.

Margin details
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.

Looking ahead
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.

Investor sentiment
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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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool owns shares of Activision Blizzard. Motley Fool newsletter services recommend Activision Blizzard. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.