Take-Two's Earnings Aren't Even the Most Exciting Part of Its Report

When Take-Two Interactive Software Inc. (NASDAQ: TTWO) reported its fiscal first-quarter financial results after the markets closed on Monday, the video game firm said that it had $0.77 in GAAP earnings per share (EPS) and $831.3 million in revenue. Analysts had called for EPS of $1.53 and $824 million in revenue. The same period of last year reportedly had $0.41 in EPS on revenue of $540.5 million.

During first-quarter fiscal 2021, total net bookings grew 136% to $996.2 million, a first-quarter record, and compared to $422.2 million in the same period from last year.

Breaking this down even further, digitally delivered net bookings grew 139% to $915.2 million, as compared to $382.5 million last year. This also accounted for 92% of total net bookings.

Net bookings from recurrent consumer spending grew 127% and accounted for 65% of total net bookings. The largest contributors to net bookings in the quarter were “Grand Theft Auto Online” and “Grand Theft Auto V”; “NBA 2K20”; “Red Dead Redemption 2” and “Red Dead Online”; “Borderlands 3”; Social Point’s mobile offerings; “Sid Meier’s Civilization VI”; the WWE series; and “The Outer Worlds.”

Chair and CEO Strauss Zelnick noted that Take-Two currently has its strongest development pipeline in the history of the company. That, coupled with the ongoing investment in emerging markets, platforms and business models, positions the company well to capitalize on the many positive trends in the industry.

So far, management is happy with the start to the new fiscal year, as the stock is up over 37% year to date. Management went further and commented that the better than expected first-quarter operating results are leading to what looks like another strong year for the video game producer.

Looking ahead to the fiscal second quarter, the company expects to see GAAP EPS in the range of $0.85 to $0.96 and revenue between $750 million and $800 million. Consensus estimates call for $1.10 per share and $747.9 million for the quarter.

Take-Two Interactive Software stock traded up about 3% to $172.72, in a 52-week range of $100.00 to $180.61. The consensus price target is $159.04.

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