Take-Two Interactive Software Whiffs on Revenues
Take-Two Interactive Software (NAS: TTWO) reported earnings on July 31. Here are the numbers you need to know.
The 10-second takeaway
For the quarter ended June 30 (Q1), Take-Two Interactive Software whiffed 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 contracted across the board.
Take-Two Interactive Software logged revenue of $226.1 million. The 15 analysts polled by S&P Capital IQ predicted a top line of $256.1 million on the same basis. GAAP reported sales were 32% lower than the prior-year quarter's $334.4 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 -$1.16. The 15 earnings estimates compiled by S&P Capital IQ predicted -$0.65 per share. GAAP EPS were -$1.30 for Q1 versus -$0.11 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 17.4%, 1,940 basis points worse than the prior-year quarter. Operating margin was -44.6%, 4,400 basis points worse than the prior-year quarter. Net margin was -49.0%, 4,640 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $237.0 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $1.82 billion. The average EPS estimate is $2.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,152 members out of 1,242 rating the stock outperform, and 90 members rating it underperform. Among 269 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 249 give Take-Two Interactive Software a green thumbs-up, and 20 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 $17.87.
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The article Take-Two Interactive Software Whiffs on Revenues 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 the co-advisor ofMotley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Take-Two Interactive. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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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