Take-Two Interactive Software Misses Where It Counts
Take-Two Interactive Software (NAS: TTWO) reported earnings on May 22. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended March 31 (Q4), Take-Two Interactive Software beat expectations on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share grew.
Margins shrank across the board.
Take-Two Interactive Software reported revenue of $148.1 million. The 15 analysts polled by S&P Capital IQ hoped for a top line of $141.7 million on the same basis. GAAP reported sales were 19% lower than the prior-year quarter's $182.3 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 -$0.60. The 15 earnings estimates compiled by S&P Capital IQ forecast -$0.55 per share. GAAP EPS were -$0.79 for Q4 versus -$0.39 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 21.4%, 1,270 basis points worse than the prior-year quarter. Operating margin was -41.3%, 2,900 basis points worse than the prior-year quarter. Net margin was -45.1%, 3,300 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $252.7 million. On the bottom line, the average EPS estimate is -$0.60.
Next year's average estimate for revenue is $1.83 billion. The average EPS estimate is $2.26.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,151 members out of 1,238 rating the stock outperform, and 87 members rating it underperform. Among 278 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 262 give Take-Two Interactive Software a green thumbs-up, and 16 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 $18.88.
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At the time this article was published 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 ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. Motley Fool newsletter services have recommended buying shares of Take-Two Interactive Software. 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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