Will Take-Two See a Boost From Big Q4 Earnings and Outlook?

By Chris Lange Updated Jan 30, 8:49PM EST · Published May 14, 10:35AM EDT

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Will Take-Two See a Boost From Big Q4 Earnings and Outlook? — © Thinkstock

When Take-Two Interactive Software Inc. (NASDAQ: TTWO | TTWO Price Prediction) released its fiscal fourth-quarter financial results after the markets closed on Monday, the company said that it had $0.86 in earnings per share (EPS) and $539 million in revenue. Consensus estimates had called for $0.75 in EPS and $506.46 million in revenue, and it the same period of last year, it posted EPS of $0.70 on $411.37 million in revenue.

Total net bookings grew 19% to $488.4 million in the most recent quarter, as compared to $411.4 million during last year’s same period. Net bookings from recurrent consumer spending grew 27% year over year and accounted for 62% of total net bookings.

Digitally delivered net bookings grew 26% to $419.0 million, as compared to $333.1 million in last year’s fourth quarter, and accounted for 86% of total net bookings.

The largest contributors to net bookings were “NBA 2K19”; “Grand Theft Auto Online” and “Grand Theft Auto V”; “Red Dead Redemption 2” and “Red Dead Online”; “Sid Meier’s Civilization VI”; “Dragon City” and “Monster Legends”; and “WWE SuperCard” and “WWE 2K19.”

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Looking ahead to the fiscal first quarter, the company expects to see GAAP EPS in the range of $0.65 to $75 and revenue between $485 million and $535 million. Consensus estimates call for $0.42 in EPS and $418.3 million in revenue.

Strauss Zelnick, board chair and chief executive of Take-Two, commented:

Take-Two has the strongest development pipeline in its history, including sequels from our biggest franchises as well as exciting new IP. In addition, we are actively investing in emerging opportunities such as Private Division, mobile games, eSports and geographic expansion that have the potential to be enormous drivers of growth. We are exceedingly well positioned to generate significant growth and margin expansion over the long-term.

Shares of Take-Two were last seen up only fractionally at $100.34 midmorning, in a 52-week range of $84.41 to $139.91. The consensus price target is $122.44.

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About the Author Chris Lange →

Chris Lange is a writer for 24/7 Wall St., based in Houston. He has covered financial markets over the past decade with an emphasis on healthcare, tech, and IPOs. During this time, he has published thousands of articles with insightful analysis across these complex fields. Currently, Lange's focus is on military and geopolitical topics.

Lange's work has been quoted or mentioned in Forbes, The New York Times, Business Insider, USA Today, MSN, Yahoo, The Verge, Vice, The Intelligencer, Quartz, Nasdaq, The Motley Fool, Fox Business, International Business Times, The Street, Seeking Alpha, Barron’s, Benzinga, and many other major publications.

A graduate of Southwestern University in Georgetown, Texas, Lange majored in business with a particular focus on investments. He has previous experience in the banking industry and startups.