Can Take-Two Interactive Software Meet These Numbers?
Take-Two Interactive Software (NAS: TTWO) is expected to report Q2 earnings on Oct. 30. Here's what Wall Street wants to see:
The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Take-Two Interactive Software's revenues will expand 123.0% and EPS will remain in the red.
The average estimate for revenue is $238.7 million. On the bottom line, the average EPS estimate is -$0.19.
Revenue details
Last quarter, Take-Two Interactive Software booked revenue of $226.1 million. 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 details
Last quarter, non-GAAP EPS came in at -$1.16. GAAP EPS were -$1.30 for Q1 compared to -$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.
Recent performance
For the preceding 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.
Looking ahead
The full year's average estimate for revenue is $1.78 billion. The average EPS estimate is $1.95.
Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,143 members out of 1,233 rating the stock outperform, and 90 members rating it underperform. Among 280 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 260 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 Can Take-Two Interactive Software Meet These Numbers? 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 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 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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