Take-Two Interactive Software Third Quarter Earnings Sneak Peek

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) will unveil its latest earnings on Tuesday, February 5, 2013. Take-Two Interactive Software is a global publisher, developer and distributor of interactive entertainment software and hardware.

Take-Two Interactive Software, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average analyst estimate is for net income of 50 cents per share, a rise of more than threefold from the company’s actual earnings for the year-ago quarter. During the past three months, the average estimate has moved down from 54 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at 50 cents during the last month.

Past Earnings Performance: The company beat estimates last quarter after falling short in the prior two. In the second quarter, the company reported profit of 3 cents per share versus a mean estimate of net loss of 23 cents per share. In the first quarter, the company missed estimates by 46 cents.

Start 2013 better than ever by saving time and making money with your Limited Time Offer for our highly-acclaimed Stock Picker Newsletter. Click here for our fresh Feature Stock Pick now!

A Look Back: In the second quarter, the company’s loss narrowed to a loss of $12.5 million (15 cents a share) from a loss of $47.4 million (57 cents) a year earlier, beating analyst expectations. Revenue rose more than twofold to $273.1 million from $107 million.

Wall St. Revenue Expectations: Analysts are projecting a rise of 54.5% in revenue from the year-earlier quarter to $365.1 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.37 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 2.8 in the first quarter to the last quarter driven in part by an increase in liabilities. Current liabilities increased 31.1% to $336.9 million while assets rose 11% to $797.9 million.

Key Stats:

On the top line, the company is looking to build on last quarter’s revenue increase, which snapped a string of revenue drops. Revenue fell 29.3% in the third quarter of the last fiscal year, 18.7% in the fourth quarter of the last fiscal year and 32.4% in the first quarter before climbing in the second quarter.

The company boosted its gross margin by 11.8 percentage points in the in the second quarter. Revenue rose 155.1% while cost of sales rose 112.2% to $158.5 million from a year earlier.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

Stocks with improving earnings metrics are worthy of your extra attention. In fact, “E = Earnings Are Increasing Quarter-Over-Quarter” is a core component of our CHEAT SHEET investing framework for this very reason. Don’t waste another minute — click here and get our CHEAT SHEET stock picks now.

(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)