Take-Two Interactive Software Earnings: Here’s Why Investors Like These Results

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 3.23%.

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Take-Two Interactive Software Inc. Earnings Cheat Sheet

Results: Adjusted Earnings Per Share increased to $0.38 in the quarter versus EPS of $-0.60 in the year-earlier quarter.

Revenue: Rose 104.69% to $303.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Take-Two Interactive Software Inc. reported adjusted EPS income of $0.38 per share. By that measure, the company beat the mean analyst estimate of $0.23. It beat the average revenue estimate of $280.36 million.

Quoting Management: “Take-Two delivered strong revenue growth and solid non-GAAP earnings for fiscal year 2013, driven by robust demand for our groundbreaking new releases, iconic catalog titles and expanding portfolio of digitally delivered offerings,” said Strauss Zelnick, Chairman and CEO of Take-Two. “With BioShock Infinite, Borderlands 2, NBA 2K13 and XCOM: Enemy Unknown, our 2K label released four of the past year’s most critically acclaimed titles. Our commitment to delight consumers with the highest-quality interactive entertainment experiences enabled Take-Two to have an outstanding year, despite a challenging environment for many in our industry.”

Key Stats (on next page)…

Revenue decreased 27.1% from $415.77 million in the previous quarter. EPS decreased 43.28% from $0.67 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 $0.13 to a loss $0.03. For the current year, the average estimate has moved up from a profit of $0.17 to a profit of $0.18 over the last ninety days.

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(Company fundamentals provided by Xignite Financials. Email any earnings discrepancies to earnings [at] wallstcheatsheet.com)