TTWO Stock: Take-Two Misses Targets, Guides Lower

Video game publisher Take-Two Interactive Software (TTWO) late Monday missed Wall Street’s targets for its fiscal first quarter and guided lower for the current quarter and full year. TTWO stock fell in extended trading.




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The New York City-based company earned an adjusted 71 cents a share on net bookings of $1 billion in the quarter ended June 30. Analysts polled by FactSet expected Take-Two earnings of 87 cents a share on sales of $1.11 billion. In the year-earlier quarter, Take-Two earned an adjusted $1.01 a share on net bookings of $711 million.

For the current quarter ending Sept. 30, Take-Two predicted adjusted earnings of $1.30 a share on net bookings of $1.53 billion. That’s based on the midpoint of its guidance. Analysts had predicted earnings of $1.50 a share on sales of $1.73 billion in the fiscal second quarter.

For its fiscal year 2023 ending March 31, Take-Two forecast adjusted earnings of $4.72 a share on net bookings of $5.85 billion. FactSet estimates were calling for earnings of $5.37 a share on sales of $6.22 billion.

TTWO Stock Drops After Report

In after-hours trading on the stock market today, TTWO stock sank 7.4% to 116.25. During the regular session Monday, TTWO stock slid 1.3% to close at 125.51.

Take-Two’s June-quarter results included 39 days of sales and earnings from mobile games firm Zynga, which it acquired on May 23.

“We are seeing the negative effects of a weakening economy, particularly on the mobile side,” Chief Executive Strauss Zelnick told Investor’s Business Daily. “On balance, it’s not a time for great excitement because our results are a bit softer than we would have liked. And we do attribute that largely to the economy.”

Video Game Stocks Post Mixed Reports

Take-Two’s top-performing games in the June quarter included sports titles “NBA 2K22” and “WWE 2K22.”

Last week, industry peer Electronic Arts (EA) delivered better-than-expected results for its fiscal first quarter. However, EA’s guidance for the current quarter was below analyst estimates. Meanwhile, Activision Blizzard (ATVI), which is being purchased by Microsoft (MSFT), reported mixed second-quarter results.

TTWO stock ranks seventh out of 21 stocks in IBD’s Computer Software-Gaming industry group, according to IBD Stock Checkup. It has a subpar IBD Composite Rating of 39 out of 99. The Composite Rating scores a stock’s key growth metrics against all other stocks regardless of industry group.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for more stories on consumer technology, software and semiconductor stocks.

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