Video game publisher Take-Two Interactive Software (TTWO) late Wednesday beat Wall Street’s sales target for its fiscal fourth quarter but missed views on earnings. The company guided lower for the current quarter and full year ahead, and TTWO stock wavered in extended trading.
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The New York City-based company earned an adjusted 59 cents a share on net bookings of $1.39 billion in the quarter ended March 31. Analysts polled by FactSet had expected earnings of 68 cents a share on sales of $1.34 billion. On a year-over-year basis, Take-Two earnings fell 46% while net bookings surged 65%. Take-Two’s sales got a lift from its acquisition of mobile games publisher Zynga, completed in May 2022.
For the current quarter ending June 30, Take-Two predicted adjusted earnings of 29 cents a share on net bookings of $1.18 billion. That’s based on the midpoint of its outlook. Wall Street had called for earnings of 87 cents a share on sales of $1.29 billion for Take-Two’s fiscal first quarter.
For the full fiscal year ending March 31, 2024, Take-Two expects to earn an adjusted $3.12 a share on net bookings of $5.5 billion, based on the midpoint of its outlook. Analysts were seeking for earnings of $4.87 a share on sales of $6.11 billion in fiscal 2024. In the just-ended fiscal 2023, Take-Two earned an adjusted $3.48 a share on net bookings of $5.28 billion.
TTWO Stock Has Mediocre Composite Rating
In after-hours trading on the stock market today, TTWO stock alternated between gains and losses. During the regular session Wednesday, TTWO stock climbed 0.8% to close at 125.02.
Take-Two owns such popular game franchises as “Grand Theft Auto,” “Red Dead Redemption” and “NBA 2K.”
TTWO stock ranks seventh out of 23 stocks in IBD’s Computer Software-Gaming industry group, according to IBD Stock Checkup. Take-Two has a so-so IBD Composite Rating of 75 out of 99.
Last week, industry peer Electronic Arts (EA) smashed Wall Street’s targets for its fiscal fourth quarter and raised its outlook for earnings in the current quarter and full year ahead.
Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.
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