Take-Two Interactive posts mixed Q3 results
Take-Two Interactive (TTWO) posted mixed third quarter results. Adjusted earnings per share fell short of Wall Street expectations, $0.71 compared to a $0.73 estimate. Net bookings barely topped estimates, $1.34 billion versus an expected $1.32 billion. The company's outlook for fourth-quarter net bookings was shy of estimates.
Yahoo Finance's Julie Hyman and Josh Lipton break down the report.
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Editor's note: This article was written by Stephanie Mikulich
Video Transcript
JULIE HYMAN: Let's take a look at Take-Two. It's also down. Ironically, Take-Two missed, but the shares are not down like they are for a firm. So Take-Two here, net bookings a little bit ahead of estimates, $1.34 billion. But the company's fourth quarter net booking forecast is below estimates. It's only looking for at most $1.32 billion in net bookings in the fourth quarter. $1.5 billion was what analysts had been looking for. And the company's fiscal third quarter earnings per share missing estimates at $0.71. So both of those items obviously not necessarily helpful to the shares there, which are down by about 2%.
The shares this year-- I'm trying to take a look at what they've done-- they're up about 5%. So we have not seen the monster gains that some other stocks have seen.
JOSH LIPTON: And you know what will be interesting, Julie, on this one? I'd wait for the call just to hear what execs have to say. Because the big area of focus for Take-Two has been the Grand Theft Auto franchise, just kind of hype-- the great hype around the next "GTA" game. And actually, analysts are quick to point out that hype, that interest, that excitement has actually been sort of, in their opinion, kind of overshadowing near-term financial performance. And some-- some I know. Some analysts were saying-- like Michael Pachter, our buddy over at Wedbush is saying just wait for these trailers to keep coming out. And he was kind of banking on those trailers that he thinks is going to be kind of drive more share price appreciation. That's how much interest there is.
So it'll be interesting on the call, how much more color and commentary we get from the CEO about that.
JULIE HYMAN: Yeah. I mean, I guess it depends also on how patient investors want to be here. That third quarter net bookings number that I talked about was down 3% by the way. So a year-over-year decline here. And the company also talked about the contributors, largest contributors to net bookings in terms of the games. "NBA 2K," "Grand Theft Auto" as you mentioned, "Toon Blast," which is part of their Zynga platform as well, and "Empire and Puzzles." I don't know that one. But that sounds like a Julie kind of a game, "Empires and Puzzles."
JOSH LIPTON: Much more than ""GTA"" you're saying? Yeah.
JULIE HYMAN: Yeah. No, I'm not a "GTA" girl. All right. More of a crossword girl.
