What to Expect When Take-Two Reports After the Close

Take-Two Interactive Software Inc. (NASDAQ: TTWO) is scheduled to release its most recent quarterly results after the markets close on Monday. The consensus estimates are calling for $0.02 in earnings per share (EPS) and $363.79 million in revenue. The fiscal first quarter of last year had $0.12 in EPS and $288.32 million in revenue.

The company issued guidance in May that it expects to see GAAP EPS in the range of $0.65 to $0.75 and revenue in between $485 million and $535 million.

In the fiscal fourth quarter, Take-Two said that it had total net bookings increase 19% to $488.4 million, as compared to $411.4 million during the previous year’s same period. Net bookings from recurrent consumer spending grew 27% year over year and accounted for 62% of total net bookings.

At the same time, digitally delivered net bookings grew 26% to $419.0 million, as compared to $333.1 million in the prior year’s fourth quarter, and accounted for 86% of total net bookings.

The largest contributors to net bookings in the fiscal fourth quarter were “NBA 2K19”; “Grand Theft Auto Online” and “Grand Theft Auto V”; “Red Dead Redemption 2” and “Red Dead Online”; “Sid Meier’s Civilization VI”; “Dragon City” and “Monster Legends”; and “WWE SuperCard” and “WWE 2K19.”

Excluding Monday’s move, Take-Two had outperformed the broad markets, with its stock up about 18% year to date. In the past 52 weeks, the stock was up closer to 8%.

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

  • Wedbush has an Outperform rating with a $134 price target.
  • KeyCorp has an Overweight rating and a $145 price target.
  • MKM Partners has a Buy rating with a $136 price target.
  • Stephens rates it as Overweight with a $120 price target.
  • Cowen’s Outperform rating comes with a $126 price target.
  • Jefferies has a Hold rating with a $115 price target.

Shares of Take-Two traded down about 5% Monday morning at $115.49, in a 52-week range of $84.41 to $139.91. The consensus price target is $125.96.