Take-Two Interactive Software Beats on Both Top and Bottom Lines
Take-Two Interactive Software (NAS: TTWO) reported earnings on July 30. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q1), Take-Two Interactive Software beat expectations on revenues and exceeded expectations on earnings per share.
Compared to the prior-year quarter, revenue shrank significantly. Non-GAAP loss per share shrank. GAAP loss per share dropped.
Margins expanded across the board.
Take-Two Interactive Software booked revenue of $144.3 million. The 16 analysts polled by S&P Capital IQ expected sales of $125.6 million on the same basis. GAAP reported sales were 37% lower than the prior-year quarter's $226.1 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$0.54. The 16 earnings estimates compiled by S&P Capital IQ averaged -$0.58 per share. Non-GAAP EPS were -$0.54 for Q1 compared to -$1.16 per share for the prior-year quarter. GAAP EPS were -$0.71 for Q1 versus -$1.30 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 34.2%, much better than the prior-year quarter. Operating margin was -34.7%, 990 basis points better than the prior-year quarter. Net margin was -43.4%, 560 basis points better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $805.3 million. On the bottom line, the average EPS estimate is $1.57.
Next year's average estimate for revenue is $1.86 billion. The average EPS estimate is $2.35.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,152 members out of 1,243 rating the stock outperform, and 91 members rating it underperform. Among 329 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 311 give Take-Two Interactive Software a green thumbs-up, and 18 give it a red thumbs-down.
Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Take-Two Interactive Software is outperform, with an average price target of $19.17.
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The article Take-Two Interactive Software Beats on Both Top and Bottom Lines originally appeared on Fool.com.Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Take-Two Interactive. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.
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