Take-Two Stock Reaction Muted to Q1 Earnings

Take-Two Interactive Software (TTWO:US), the renowned video-game publisher, presented its second-quarter and full-year forecast on Tuesday, although both fell short of the average analyst estimate. 

In their first quarter results, Take-Two showcased growth in several areas. Net bookings for the period reached $1.20 billion, a 20% year-over-year increase, falling just short of the estimated $1.21 billion. Digital Online net bookings rose by 22% to $1.17 billion, surpassing the forecast of $1.15 billion. 

TTWO shares were mostly flat in the early Wednesday trade.

For the second quarter, Take-Two projected net bookings in the range of $1.4 billion to $1.45 billion, slightly below the Bloomberg Consensus estimate of $1.46 billion. The adjusted EPS is anticipated to be between $0.95 to $1.05, again lower than the estimated $1.15. 

Looking forward to 2024, Take-Two adjusted their forecast for adjusted Ebitda to a range of $822 million to $875 million, slightly lower than the previous range of $840 million to $892 million. The average analyst estimate stood at $893.1 million. 

However, the company maintained its net bookings projection of $5.45 billion to $5.55 billion, still short of the estimated $5.57 billion. TTWO also maintained its adjusted EPS forecast range of $3 to $3.25, however, the analyst estimate was higher at $3.31.

"We had a strong start to the fiscal year and achieved Net Bookings of $1.2 billion, which was at the high end of our expectations.  Our performance was led by our catalog of iconic, industry-leading intellectual properties, which continues to resonate with our player communities worldwide," said Strauss Zelnick, Chairman and CEO of Take-Two.

Congressman Ro Khanna disclosed in June he was selling TTWO shares.