Although we don't believe in timing the market or panicking over market movements, we do like to keep an eye on big changes -- just in case they're material to our investing thesis.
What: Shares of video game maker Take-Two have popped today by more than 15% after the company reported strong earnings.
So what: Adjusted revenue came in at $405 million, simply crushing the consensus estimate of $366.3 million. The same story played out with the bottom line, with adjusted net income of $78.8 million, or $0.67 per share. Investors would have been happy with just $0.55 per share in adjusted profits.
Now what: Borderlands 2 and NBA 2K13 were two of the big revenue drivers, and sales are off to a strong start. Shares were under pressure last week when the company announced that the fifth installment of its popular Grand Theft Auto franchise would launch in September, later than most investors were expecting. The company expects full-year adjusted revenue of $1.15 billion to $1.2 billion with adjusted earnings per share of $0.05 to $0.20.
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The article Why Take-Two Shares Popped originally appeared on Fool.com.
Fool contributor Evan Niu, CFA, has no position in any stocks mentioned. 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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