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Take-Two Interactive Software Inc. (NASDAQ: TTWO) reported its financial results for the fiscal third quarter on Monday that topped analysts’ estimates for earnings and revenue. The company also gave upbeat guidance for the full year on Monday. As per CEO Strauss Zelnick:

“Due to an incredibly strong holiday season, coupled with our ability to provide consistently the highest-quality entertainment experiences, especially as many individuals continue to shelter at home, Take-Two delivered operating results that significantly exceed our expectations.”

Take-Two’s Q3 financial results versus analysts’ estimates

Take-Two reported £132.61 million of net income in the third quarter that translates to £1.14 per share. In the same quarter last year, its net income had come in at a lower £119.07 million or £1.04 per share. A report last month said that Tencent could make a multibillion-dollar bid to acquire Take-Two Interactive or Electronic Arts.

The video game holding company valued its revenue in Q3 at £626.58 million versus the year-ago figure of a higher £676.95 million. According to FactSet, experts had forecast Take-Two to post £551.33 million of revenue and 82 pence per share of earnings in the recent quarter.

Take-Two Interactive shares, that you can learn to buy online here, closed the regular session more than 1% up on Monday. The stock, however, plummeted a little under 5% in extended trading. It is now exchanging hands at £148.48 per share after recovering from a low of £73 per share in March 2020 when the impact of the COVID-19 crisis was at its peak.

Take-Two Interactive’s guidance for the future

For the full financial year, Take-Two now forecasts its revenue to fall in the range of £2.36 billion to £2.39 billion. The New York-based company expects up to £3.04 per share of annual earnings. In comparison, analysts are calling for £2.39 billion of revenue for Take-Two this year and £2.69 per share of full-year earnings.  

For the fourth quarter, Take-Two predicts up to 71.33 pence of earnings per share and up to £547.32 million of revenue versus 42.94 pence per share and £425.12 million, respectively, expected.

Take-Two withdrew its bid to acquire Codemasters Group Holdings in January as Electronic Arts Inc. placed a more lucrative bid for the racing games publisher. At the time of writing, Take-Two Interactive has a market cap of £17.86 billion and a price to earnings ratio of 51.60.

The post Take-Two Interactive tops analysts’ estimates for earnings and revenue in Q3 appeared first on Invezz.



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