Take-Two Earnings: Tops Analyst Estimates and Shares Climb

Take-Two Interactive Software Inc. (NASDAQ:TTWO) delivered a profit and beat Wall Street’s expectations, AND beat the revenue expectation. The revenue beat is a positive sign to shareholders seeking high growth out of the company. Shares are up 6.64%.

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Take-Two Interactive Software Inc. Earnings Cheat Sheet

Results: Net income increased 406.38% to $71.4 million (67 cents per diluted share) in the quarter versus a net gain of $14.1 million in the year-earlier quarter.

Revenue: Rose 75.94% to $415.8 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Take-Two Interactive Software Inc. reported adjusted net income of 67 cents per share. By that measure, the company beat the mean analyst estimate of $0.54. It beat the average revenue estimate of $361.94 million.

Quoting Management: “Take-Two’s positive business momentum continued in the third quarter, enabling us to deliver growth and profits that exceeded our outlook,” said Strauss Zelnick, Chairman and CEO of Take-Two. “Our results benefited from the record-breaking launch of NBA 2K13, along with continued strong demand for Borderlands 2, the successful launch of XCOM: Enemy Unknown, and robust holiday sales of our catalog and growing portfolio of digitally delivered offerings. With consumer anticipation building for the launches of BioShock Infinite and Grand Theft Auto V, we are well positioned for a solid finish to fiscal year 2013 and substantial revenue and earnings growth in fiscal year 2014…

…I am also pleased to report that our Board of Directors has authorized the Company to return capital to shareholders through the repurchase of its common stock. Given our strong balance sheet and favorable business outlook in both the short and long-term, we have ample capital to pursue a variety of investment opportunities.”

Key Stats:

Revenue increased 52.26% from $273.08 million in the previous quarter. Net income increased to $71.4 million in the quarter versus a net loss of $12.49 million in the previous quarter.

Looking Forward: Analysts have a more negative outlook for the company’s next-quarter performance. Over the past three months, the average estimate for next quarter’s earnings has fallen from a profit of $0.59 to a profit $0.36. For the current year, the average estimate has moved down from a profit of $0.3 to a profit of $0.15 over the last ninety days.

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(Company fundamentals provided by Xignite Financials.)