TTWO Stock: Take-Two Misses with Results, Outlook

TTWO Stock: Take-Two Misses with Results, Outlook

Video game publisher Take-Two Interactive Software ( TTWO ) late Monday missed Wall Street targets for the fiscal second quarter and cut its outlook for the December quarter and full year. TTWO stock fell in extended trading.




X



The New York-based company earned an adjusted $1.30 per share on net bookings of $1.5 billion in the quarter ended Sept. 30. Analysts polled by FactSet had expected earnings of $1.37 per share on sales of $1.55 billion. On a year-over-year basis, Take-Two’s profits fell 20% while net bookings rose 53%.

For the current quarter, Take-Two forecast adjusted earnings of 84 cents per share on net bookings of $1.435 billion. This is based on the medium of its guidance. Analysts were looking for earnings of $1.42 a share on sales of $1.7 billion in the fiscal third quarter ended Dec. 31.

For the fiscal year ended March 31, Take-Two forecast net bookings of $5.4 billion to $5.5 billion. The average price of $5.45 billion is below Wall Street’s target of $5.9 billion. Three months ago, Take-Two forecast fiscal 2023 net bookings of $5.8 billion to $5.9 billion.

TTWO Shares fall after report

In after-hours trading today, TTWO stock was down 7.7% at 100. During the regular session on Monday, TTWO stock traded down a fraction to close at 108.40.

Here are the earnings report details.

Take-Two is the company behind such game franchises as “Grand Theft Auto,” “Red Dead Redemption” and “NBA 2K.” With the recent acquisition of Zynga, Take-Two added mobile games such as “Empires & Puzzles”, “Merge Dragons” and “Words with Friends”.

Take-Two has a poor composite score

Elsewhere Monday, opponent Activision Blizzard (ATVI) reported that its game “Call of Duty: Modern Warfare 2” surpassed $1 billion in worldwide sales in its first 10 days of release. This surpassed the previous record for the franchise of 15 days set in 2012 by “Call of Duty: Black Ops 2”.

Last week, the industry Electronic arts (EA) missed adjusted sales targets for the September quarter and cut its outlook for bookings in the December quarter. However, it saw strong sales of EA Sports titles “FIFA 23” and “Madden NFL 23”.

EA ranks No. 1 of 21 stocks in IBD’s Computer Software-Gaming industry group, according to IBD Stock Checkup. Activision is in third place, but its shares have rallied Microsoft‘s (MSFT) pending acquisition of the company. Regulatory scrutiny has delayed the closing of this deal.

TTWO stock ranks ninth in the group with a poor IBD Composite Rating of 37 out of 99.

IBD’s Composite Rating is a combination of key fundamental and technical metrics that help investors gauge a stock’s strengths. The best growth stocks have a Composite Score of 90 or better.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer tech, software and semiconductor stocks.

YOU MIGHT ALSO LIKE:

Covid outbreak in China to limit availability of Apple iPhone 14 Pro

Roku Ad Spend Hits Reduction, Other Video Streaming Services

Technical services provider CDW top earnings target but light sales

Learn how to time the market with IBD’s ETF Market Strategy

View stocks in the list of leaders near a buy point

Leave a Reply

Your email address will not be published. Required fields are marked *