Take-Two Beats the Street in a Quiet Quarter
Rockstar Games / Grand Theft Auto V
Take-Two Interactive posted better-than-expected financial results for the fiscal quarter ending in June, beating Wall Street’s expectation of a 26-cent loss per share with a non-GAAP loss of only 14 cents, and the Street’s forecast of $135 million in revenue with a reported $151 million.
The AAA videogame publisher is gearing up for a big fall and winter, with a next-gen re-release of Grand Theft Auto V, a new Civilization strategy game from Sid Meier and Evolve, a buzzy multiplayer shooter from the creators of the popular Left 4 Dead franchise. For the full 2015 fiscal year (in which this was the first quarter), it’s forecasting revenue between $1.35 billion and $1.45 billion, and earnings per share between 80 cents and $1.05; the consensus estimates among analysts are within — but toward the high end — of those ranges.
Of particular note: Evolve, which won great acclaim at an otherwise muted E3, has been delayed into February 2015.
At the time of this writing, Take-Two shares were trading down more than four percent after hours. Since bottoming out in mid-2012, the stock has been steadily climbing back to pre-2008 crash levels.
Few games were released in the most recent quarter, but digital revenue from the Grand Theft Auto series, the basketball franchise NBA 2K and the shooter Borderlands 2 was the biggest driver of the overall revenue beat, the company said. Digital sales were up 43 percent year over year to $106.4 million.