What to Expect When Take-Two Reports Late Monday

Take-Two Interactive Software Inc. (NASDAQ: TTWO) is scheduled to release its fiscal fourth-quarter financial results after the markets close on Monday. The consensus estimates are calling for $0.75 in earnings per share (EPS) and $506.46 million in revenue. The same period of last year reportedly had $0.70 in EPS and $411.37 million in revenue.

In the fiscal third quarter, Take-Two issued guidance for this quarter of EPS in the range of $0.67 to $0.77 with net revenue between $530 million and $580 million and net bookings of $450 million to $500 million.

Take-Two delivered better than expected results in the fiscal third quarter. The outperformance was driven primarily by the record-breaking launch of “Red Dead Redemption 2,” along with strong results from “NBA 2K19,” which was one of the best-selling video games of 2018.

Additionally, consumers engaged significantly with Take-Two offerings, and recurrent consumer spending grew 31% to a new record. The largest contributors to net revenue in the most recent quarter were “Red Dead Redemption 2”; “NBA 2K19” and “NBA 2K18”; “Grand Theft Auto Online” and “Grand Theft Auto V”; “WWE 2K19” and “WWE SuperCard”; “Dragon City” and “Monster Legends”; and “Sid Meier’s Civilization VI.”

Excluding Monday’s move, Take-Two stock has underperformed the broad markets, with shares flat year to date. In the past 52 weeks, the stock is down 11%.

A few analysts weighed in on Take-Two ahead of the results:

  • Wedbush has a Buy rating with a $119 price target.
  • Cowen has an Outperform rating with a $113 price target.
  • Morgan Stanley has an Overweight rating and a $120 target.
  • Stephens rates it as a Buy with a $110 price target.
  • BMO Capital Markets has an Underperform rating.

Shares of Take-Two were last seen down more than 2% at $100.70, in a 52-week range of $84.41 to $139.91. The consensus price target is $122.44.

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