Company Performance - Take-Two Interactive (TTWO) closed at $214.29, reflecting a -0.74% change from the previous session, underperforming the S&P 500's loss of 0.33% [1] - Over the past month, TTWO shares appreciated by 3.24%, outperforming the Consumer Discretionary sector's loss of 4.73% and the S&P 500's loss of 4.03% [2] Earnings Projections - The upcoming EPS for Take-Two Interactive is projected at $1.08, indicating a significant 248.39% increase compared to the same quarter last year [3] - Revenue is forecasted to be $1.55 billion, representing a 14.73% growth year-over-year [3] - For the full year, analysts expect earnings of $2.51 per share and revenue of $5.61 billion, marking changes of 0% and +5.27% respectively from the previous year [4] Analyst Estimates and Rankings - Recent modifications to analyst estimates for Take-Two Interactive reflect short-term business trends, with positive revisions indicating analyst optimism about the company's profitability [5] - The Zacks Rank system, which ranges from 1 (Strong Buy) to 5 (Strong Sell), currently ranks Take-Two Interactive at 3 (Hold) [7] - Over the last 30 days, the Zacks Consensus EPS estimate has increased by 0.43% [7] Valuation Metrics - Take-Two Interactive has a Forward P/E ratio of 85.91, significantly higher than its industry's Forward P/E of 20.69 [8] - The company has a PEG ratio of 2.64, compared to the Gaming industry's average PEG ratio of 2.11 [8] Industry Context - The Gaming industry is part of the Consumer Discretionary sector and currently holds a Zacks Industry Rank of 136, placing it in the bottom 46% of over 250 industries [9] - Research indicates that the top 50% rated industries outperform the bottom half by a factor of 2 to 1 [9]

Core Viewpoint - The article discusses the reliability of Wall Street analysts' recommendations, particularly focusing on Take-Two Interactive (TTWO), and highlights the potential misalignment of brokerage firms' interests with those of retail investors [1][4]. Group 1: Brokerage Recommendations for Take-Two - Take-Two currently has an average brokerage recommendation (ABR) of 1.25, indicating a consensus between Strong Buy and Buy, based on 24 brokerage firms' recommendations [2]. - Out of the 24 recommendations, 20 are Strong Buy and 2 are Buy, which accounts for 83.3% and 8.3% of all recommendations respectively [2]. Group 2: Limitations of Brokerage Recommendations - Relying solely on brokerage recommendations for investment decisions may not be advisable, as studies indicate they often fail to guide investors effectively towards stocks with high price appreciation potential [4]. - Analysts from brokerage firms tend to exhibit a strong positive bias in their ratings, issuing five "Strong Buy" recommendations for every "Strong Sell" [5]. Group 3: Zacks Rank as an Alternative - Zacks Rank is presented as a more reliable tool for stock evaluation, categorizing stocks from Zacks Rank 1 (Strong Buy) to Zacks Rank 5 (Strong Sell), and is based on earnings estimate revisions [7][10]. - The Zacks Rank is timely and reflects the latest earnings estimates, unlike the ABR, which may not be up-to-date [11]. Group 4: Current Earnings Outlook for Take-Two - The Zacks Consensus Estimate for Take-Two's current year earnings has declined by 0.9% over the past month to $2.51, indicating growing pessimism among analysts regarding the company's earnings prospects [12]. - This decline in earnings estimates has resulted in a Zacks Rank 4 (Sell) for Take-Two, suggesting caution despite the Buy-equivalent ABR [13].

Take-Two Interactive Software Inc TTWO reported upbeat third-quarter financial earnings after the market close on Thursday.Take-Two reported third-quarter revenue of $1.37 billion, missing analyst estimates of $1.39 billion, according to Benzinga Pro. The video game publisher reported third-quarter adjusted earnings of 72 cents per share, beating analyst estimates of 57 cents per share.Total net bookings grew 3% year-over-year. Net Bookings from recurrent consumer spending grew 9% year-over-year and account ...

Core Insights - Take-Two Interactive Software's shares surged by 14.4% on a day when major indices like the S&P 500 and Nasdaq Composite declined [1] - The company reported better-than-expected Q3 2025 earnings, with a significant EPS of $0.72 compared to the expected $0.58 [2][3] - Take-Two confirmed the release of a highly anticipated game, Grand Theft Auto 6, for fall 2025, which contributed to the positive market reaction [4][5] Financial Performance - Earnings per share (EPS) for Q3 2025 was reported at $0.72, exceeding expectations of $0.58 [3] - The company anticipates a further increase in EPS for the current quarter, projecting $1.37 per share against Wall Street's consensus of $1.22 [3] Game Releases and Market Outlook - The strong performance was attributed to the "significant outperformance" of NBA 2K, indicating robust sales from key titles [4] - The upcoming release of Grand Theft Auto 6 is expected to be a major driver of sales, with company leadership confirming its release date, alleviating concerns of potential delays [4][5]

Core Viewpoint - Take-Two Interactive Software (TTWO) reported a wider net loss in Q3 fiscal 2025 compared to the previous year, with revenues falling short of expectations, indicating challenges in both game and advertising segments [1][2][4]. Financial Performance - The net loss for Q3 fiscal 2025 was 72 cents per share, compared to a loss of 71 cents per share in the same quarter last year, while the consensus estimate was 57 cents per share [1] - GAAP net revenues decreased by 0.5% year over year to $1.36 billion, below the consensus estimate of $1.39 billion [1] - Game revenues, which constitute 91.4% of total revenues, rose by 2.9% year over year to $1.24 billion, while advertising revenues fell by 26.2% to $116.7 million [2] Geographic Performance - Revenues from the United States increased by 0.9% year over year to $825.7 million, making up 60.7% of GAAP net revenues, while international revenues decreased by 2.5% to $534.1 million [2] Bookings and Consumer Spending - Total bookings improved by 2.7% year over year to $1.37 billion, with U.S. bookings rising by 7% to $841.8 million [3] - Recurrent consumer spending rose by 9% for the period, accounting for 79% of net bookings [5] Distribution Channels - Digital online revenues grew by 1% year over year to $1.31 billion, representing 96.4% of GAAP net revenues, while physical retail revenues plummeted by 28.8% to $49.1 million [6] Platform Performance - Revenues from mobile, console, and PC accounted for 53.8%, 37.4%, and 8.8% of GAAP net revenues, respectively, with mobile revenues increasing by 3.5% to $731.6 million [7] Operating Metrics - GAAP gross profit surged by 12.1% year over year to $759.9 million, with gross margin expanding to 55.9% from 49.6% in the previous year [12] - Operating expenses increased by 10.5% year over year to $892 million, leading to an operating loss of $132.1 million [13] Balance Sheet - As of December 31, 2024, Take-Two had $1.21 billion in cash and short-term investments, up from $879.6 million as of September 30, 2024, with total debt at $3.66 billion [14] Future Guidance - For Q4 fiscal 2025, the company expects GAAP net revenues between $1.52 billion and $1.62 billion, with a projected loss per share between 13 cents and 20 cents [15][16] - For fiscal 2025, GAAP net revenues are expected to be between $5.57 billion and $5.67 billion, with net bookings projected to grow by 5% compared to fiscal 2024 [18]

Group 1 - Take-Two Interactive Software, Inc. shares have surged following positive earnings reports, but this upward movement may be temporary [1] - The stock is approaching a previous peak of around $215.00 from February 2021, which may create resistance due to historical investment psychology [2][5] - Investors who bought at the previous peak may place sell orders to break even, potentially leading to a concentration of sell orders at this price level [3][4] Group 2 - The concept of "the market has a memory" suggests that significant price levels retain their importance over time, even years later [4][5] - Take-Two has filed a Shelf Registration, indicating management's belief that current stock levels may be optimal for issuing and selling more shares, which could signal a lack of confidence in further price increases [5]

Core Insights - The anticipation surrounding Grand Theft Auto VI (GTA VI) has significantly influenced the stock performance of Take-Two Interactive Software (TTWO), with recent confirmations about the game's release schedule leading to a notable stock rally [1][4]. Stock Performance - As of the latest update, TTWO stock has increased by 11.94% year-to-date (YTD), with the majority of this rally occurring in the extended trading session and the initial minutes of Friday's trading [2]. - Despite a quarterly revenue miss, where TTWO reported $1.37 billion against a forecast of $1.39 billion, the stock still rallied, indicating strong market sentiment driven by GTA VI hype [3]. Earnings Report - The earnings per share (EPS) for TTWO came in at $0.73, which was 29.71% higher than the predicted $0.56, contributing positively to investor sentiment [3]. Analyst Ratings - Recent price target increases from UBS (from $175 to $230) and Morgan Stanley (from $200 to $215) suggest that analysts view TTWO shares as a promising investment ahead of the GTA VI release [4]. Historical Context - Historical performance of the GTA series, particularly GTA V which shipped 210 million copies, supports the expectation that TTWO stock will continue to attract long positions as the release date approaches [4]. Investment Strategy - The current market environment may present a "buy the news, sell the game" scenario, where investing in anticipation of the game's release could be more beneficial than holding through the actual launch [8]. - Historical data indicates that investing in TTWO months before a game release has been lucrative, with a $1,000 investment made in 2013 growing significantly by the time of GTA V's release [8][9].

TAKE-TWO INTERACTIVE TAKE-TWO INTERACTIVE SOFTWARE, INC. (NASDAQ: TTWO) THIRD QUARTER FISCAL 2025 RESULTS & GUIDANCE SUMMARY CAUTIONARY NOTE: FORWARD LOOKING STATEMENTS Statements contained herein which are not historical facts are considered forward-looking statements under federal securities laws and mav be identified by words such as "anticipates," "believes," "expects," "intends," "plans," "potential," "predicts," "projects," "seeks," "should," "will," or words of similar meaning and include, but are no ...

Financial Data and Key Metrics Changes - The company reported third-quarter net bookings of $1.37 billion, which was within the guidance range of $1.35 billion to $1.4 billion, driven by strong performance in NBA 2K [9][32] - GAAP net revenue was $1.36 billion, flat compared to the previous year, while the cost of revenue declined by 13% to $600 million [34] - Operating expenses increased by 10% to $892 million, with a management basis increase of 8% year-over-year [35][40] Business Line Data and Key Metrics Changes - NBA 2K saw over 30% growth, significantly surpassing forecasts, with recurrent consumer spending up over 30% and daily active users up nearly 20% [12][33] - Mobile segment recurrent consumer spending grew mid-single digits, below expectations, primarily due to underperformance in hyper-casual titles and Empires and Puzzles [16][33] - The Grand Theft Auto series continues to perform well, with GTA V selling over 210 million units worldwide and GTA Online showing strong engagement [14][15] Market Data and Key Metrics Changes - The company expects net bookings for fiscal year 2025 to be between $5.55 billion and $5.65 billion, representing a 5% growth over fiscal 2024 [10][36] - The geographic split of net bookings is projected to be approximately 60% from the United States and 40% from international markets [38] Company Strategy and Development Direction - The company is optimistic about the upcoming releases, including Sid Meier's Civilization VII, Mafia: The Old Country, Grand Theft Auto VI, and Borderlands 4, which are expected to drive significant growth [11][28] - The focus remains on creating innovative and engaging entertainment experiences, with expectations for record levels of net bookings in fiscal 2026 and 2027 [12][45] Management's Comments on Operating Environment and Future Outlook - Management expressed confidence in the commercial potential of upcoming titles and the transformative effect they will have on the business and industry [11][22] - The company acknowledged challenges in the mobile segment but remains optimistic about Zynga's ability to create new franchises and maintain momentum [17][21] Other Important Information - The company is maintaining its guidance for the fourth quarter, projecting net bookings between $1.48 billion and $1.58 billion, with significant contributions expected from NBA 2K and new releases [42][43] - Non-GAAP adjusted unrestricted operating cash flow is expected to be an outflow of $150 million, unchanged from prior forecasts [39] Q&A Session Summary Question: Potential revenue synergies from Zynga acquisition - Management noted that while bringing legacy IP to mobile is an opportunity, the biggest hits in mobile are often native to mobile, and they are working on interesting projects that have not yet been announced [50][52] Question: Profitability of Match Factory - Management confirmed that Match Factory is expected to turn profitable towards the end of fiscal 2025, with continued strong performance [56][57] Question: Market bifurcation in mobile gaming - Management disagreed with the notion of a bifurcated market, emphasizing that Zynga's mobile business has a broad range of owned and licensed IP, which offers opportunities for growth [58][59] Question: Performance of NBA 2K - Management attributed the success of NBA 2K to both the transition to next-gen consoles and ongoing innovations in gameplay, which have resonated well with players [67][70] Question: Marketing strategies for new titles - Marketing efforts are typically ramped up around the launch of titles, with a focus on digital marketing and consumer engagement [85][87] Question: Evaluation of Netflix partnership for WWE - Management expressed a positive relationship with Netflix and emphasized the importance of evaluating opportunities based on consumer benefits [90][92] Question: Capitalized software on the balance sheet - Management clarified that the capitalized software reflects the technological feasibility of titles and will be amortized as those titles release [113][115] Question: Reactivation of GTA fans with GTA VI launch - Management highlighted the importance of delivering quality content to engage both current and lapsed players, without predicting specific reactivation rates [120][124] Question: Roblox platform as a potential destination - Management views Roblox as a competitive situation and does not currently see it as a viable destination for Take-Two's content, but remains open to opportunities [130][132]

Take-Two Interactive (TTWO) reported $1.37 billion in revenue for the quarter ended December 2024, representing a year-over-year increase of 2.7%. EPS of $0.72 for the same period compares to $0.71 a year ago.The reported revenue represents a surprise of -0.69% over the Zacks Consensus Estimate of $1.38 billion. With the consensus EPS estimate being $0.57, the EPS surprise was +26.32%.While investors scrutinize revenue and earnings changes year-over-year and how they compare with Wall Street expectations to ...