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Take-Two Narrows Loss, Plans for Release of Grand Theft Auto V and Other Blockbusters

By  +Follow July 31, 2013 7:04AM
Tickers Mentioned:

Keeping the theme of solid tech earnings for the latest quarter, Take-Two Interactive Software Inc. (TTWO) posted better-than-expected results after Tuesday’s closing bell as sales of Borderlands 2 and NBA2K13 rose.  Meanwhile, the game maker boosted its outlook for the current quarter and for the full fiscal 2014 year, ending March 31, 2014.

For the first quarter of fiscal 2014, the New York-based company posted net revenue of $142.7 million, down sharply from sales of $226.1 million in the year prior quarter that swelled on the release of Max Payne 3 and Spec Ops: The Line.  Take-Two didn’t have a major title release in the latest quarter.  Net loss from continuing operations for the quarter was $61.9 million, or 71 cents per share, versus a net loss of $110.8 million, or $1.30 per share, in the year prior quarter.  On an adjusted basis, which accounts for deferred revenue from certain games, discontinued operations and other special items, net loss narrowed to $47.1 million, or 54 cents per share, compared to $98.8 million, or $1.16 per share, in last year’s quarter.

Wall Street was expecting a larger adjusted loss of 66 cents per share on revenue of $131.8 million.

Sales from digitally delivered content expanded 128 percent year-over-year to account for more than half of all GAAP revenue.  The biggest contributions were made by three new digital expansion packs for Borderlands 2.  Catalog sales of older titles, such as the Borderlands and Grand Theft Auto franchises and Red Dead Redemption, made up 60 percent of adjusted net revenue.

Major upcoming releases for Take-Two include NBA 2K14 (featuring the debut of Lebron James on the cover) on October 1; WWE 2K14 (featuring Dwayne “The Rock” Johnson on the cover) on October 29; The Bureau: XCOM Declassified on August 20; and the much-anticipated release of Grand Theft Auto V on September 17.  Another upgrade pack for Borderlands 2 is also expected in the fall as well as the release of several games for Xbox One and PlayStation 4 once those next-generation gaming consoles debut later this year.

“Our better-than-expected first quarter results demonstrate that the market remains strong for the highest-quality interactive entertainment,” said Strauss Zelnick, chairman and chief executive of Take-Two.  “With Grand Theft Auto V launching on September 17th, followed by the releases of NBA 2K14 and WWE 2K14, fiscal 2014 is poised to be one of our best years ever,” he added.

Looking at the current quarter, the company sees non-GAAP net revenue between $750 and $800 million and adjusted profits between $1.25 and $1.35 per share.  Analysts were expecting earnings per share of $1.66 on sales of $818 million.

For the full fiscal year, Take-Two forecast non-GAAP net revenue in the range of $1.775 billion to $1.875 billion and earnings per share of $2.25 to $2.50.  This is up from the company’s prior guidance of profits between $2.05 and $2.30 per share.

Shares of TTWO ended the regular session Tuesday essentially flat at $16.99, but have climbed to $17.25 in extended trading with the earnings beat, although the soft second-quarter guidance moderated the gains.  Shares are up about 55 percent so far in 2013 and are sitting near their highest level in five years.  Shares have fought resistance at $17.55, hitting it in May 2011 and again two months ago to now challenge it yet again.

DISCLOSURE: The views and opinions expressed in this article are those of the authors, and do not represent the views of equities.com. Readers should not consider statements made by the author as formal recommendations and should consult their financial advisor before making any investment decisions.

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Results for TTWO
31 Oct 14 16:27:26
$ATVI $EA and $TTWO will all likely get acquired by traditional media companies or look to move laterally into those markets imo. 1st inning
Fa$tlane $tocks
31 Oct 14 15:46:28
Jim Cramer's Top Stock Picks: CELG REGN GILD BIIB TTWO CRL FLEX Today 05:00 AM $CELG $GILD $REGN $TTWO $BIIB $FLEX http://t.co/m96YbEec0q
31 Oct 14 15:32:39
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31 Oct 14 15:31:25
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John Spatta
31 Oct 14 14:33:54
For October, $EA +16.58% $TTWO +18.07% $ATVI (3.18%) $ATVI the dog or going to break out next week after earnings?
gordon gekko is god
31 Oct 14 14:30:09
Video game stocks adds to gains after Sony reports strong PS4 sales http://t.co/9klZjHMfaa $SNE, $EA, $ATVI, $TTWO, $GME, $AMD
31 Oct 14 14:28:56
Video game stocks adds to gains after Sony reports strong PS4 sales http://t.co/rW441mYM0o $SNE $EA $ATVI $TTWO
Market Int Center
31 Oct 14 12:46:42
Potential TakeTwo Interactive $TTWO Trade Has 6.13% Downside Protection ( http://t.co/XDOgZqcLVA )
Daily Contracts
31 Oct 14 11:21:02
Real-Time feed of company contracts, original agreements and executive updates from Take-Two Interactive $TTWO http://t.co/L0jdt8IOod
Stock Signaling
31 Oct 14 11:02:28
Movers and Shakers: Trading on Major News: $AEGR $WY $AVIV $LNKD $BUD $TSO $OHI $WU $NEM $ABX $EXPE $GG $GRPN $ABC $TTWO #stocks #nyse #mkt
31 Oct 14 10:16:24
CHIEFS BIG PLAY NEXT WEEK: $ATVI reporting Tuesday. Look for a solid 4% by end of day Wednesday. $TTWO crushed earnings, so will $ATVI
31 Oct 14 10:10:14
$EA , $TTWO rallied after earnings. $ATVI reports11/4, but moving up on industry news already. $GME reports 11/20 - short squeeze soon?
Stock Signaling
31 Oct 14 10:01:05
25 Stocks To Watch: http://t.co/Vtx6dLy0Nw : $BIN $SGEN $ACHC $IMPV $MXIM $ATML $TSO $YRCW $MELI $INCY $VCRA $BBD $MGM $TTWO $RFMD #stocks
31 Oct 14 09:20:40
+2145 for week. were long $FWM $CRR $ARCP short $HD $CBRL $AAPL $GMCR $KIM $ULTA $DPZ $ISRG $RT $GILD $V $SPG $TTWO http://t.co/onKVrLIgzO
DayTrading Power
31 Oct 14 09:01:47
DTP live chat day trading position update: $ONNN 1000 8.27 $MBLY 400 51.50 $TTWO 300 26.58
Stock Wars
31 Oct 14 09:00:00
U.S. Active (Stock Wars): $GPRO +13.08%, $AMZN +1.53%, $FB +1.82%, $AAPL +0.5%, $TTWO +4.51% http://t.co/iKxPnk4TjS #StockWars
31 Oct 14 08:56:34
RT @StockSignaling: Movers and Shakers: Trading on Major News: $WU $NEM $ABX $EXPE $GG $GRPN $ABC $TTWO $BWA $NOV $TASR $WLT $BG $V $MPC ht…
Rag Time Gal
31 Oct 14 08:52:23
RT @StockSignaling: Pre-Market Price Advances: $MCHP $SPPI $WETF $ONNN $MELI $CAVM $CTRX $INCY $TTWO $DWA $CRUS $AVNR $LOPE $JDSU $ARCP htt…
31 Oct 14 08:52:06
RT @StockSignaling: Upgraded Stocks Active in Pre-Market: $YRCW $MELI $TTWO $LOPE $FEYE $CHRW $BWLD $MSG $WMGI $ALGN $YNDX $TSCO $BIIB $TXN…
31 Oct 14 08:49:54
RT @StockSignaling: Movers and Shakers: Recently Upgraded: $FB $TSO $ATML $MBT $CREE $BBY $LOW $BWA $WLL $LOPE $V $TTWO $BBD $RFMD $SEE htt…
31 Oct 14 08:42:53
$TTWO Shorts running for the hills #itoldyouso
31 Oct 14 08:35:57
Another 52 week & 6 year high $TTWO
31 Oct 14 08:30:51
Take-two Interactive Software Inc. (TTWO) Hits New 52-week High During October 30 Session $TTWO http://t.co/TGCe7Qmnu1
Dustin Moore
31 Oct 14 08:15:43
$TTWO trading very strong following yesterday's big move.
Stock Signaling
31 Oct 14 08:02:50
Movers and Shakers: Recently Upgraded: $FB $TSO $ATML $MBT $CREE $BBY $LOW $BWA $WLL $LOPE $V $TTWO $BBD $RFMD $SEE http://t.co/Vtx6dLy0Nw
Sean Danker-Smith
31 Oct 14 07:40:45
holy smokes $TTWO $ATVI $SNE sometimes it's good to be wrong happy halloween, jeez http://t.co/Z9t61QWIBN
Thomas McGoey
31 Oct 14 07:34:49
"Cramer: This stock is no one-trick pony http://t.co/MeTrwjmMK8" Finally. $TTWO
31 Oct 14 07:28:48
$TTWO thu next extension iz 27
Sterne Agee
31 Oct 14 07:24:41
Jefferies Group Reaffirms Hold Rating for Take-Two Interactive Software $TTWO @RatingsNetwork @SterneAgee http://t.co/RzTG9RpYUt
Alexander Morris
31 Oct 14 07:23:03
$TTWO: 1mRunaway+:2 [+4%,.2%offHi], PrvCHi, PDayGp+, 58:6Accel+, allTFs+; TLM:0.6; ILM:0.9, goPop+[+2.1%], 1YrHi+, DyVol:783T:0.1x:0.2x,
31 Oct 14 06:37:29
RT @StockSignaling: Upgraded Stocks Active in Pre-Market: $YRCW $MELI $TTWO $LOPE $FEYE $CHRW $BWLD $MSG $WMGI $ALGN $YNDX $TSCO $BIIB $TXN…
Large Void Bot
31 Oct 14 06:33:12
Stock Signaling
31 Oct 14 06:31:45
Upgraded Stocks Active in Pre-Market: $YRCW $MELI $TTWO $LOPE $FEYE $CHRW $BWLD $MSG $WMGI $ALGN $YNDX $TSCO $BIIB $TXN $STLD #daytrading
Mark Weaver
31 Oct 14 06:10:11
@jimcramer is $GME a buy into the holidays following $TTWO success? @MadMoneyOnCNBC
Stock Signaling
31 Oct 14 06:01:08
Pre-Market Price Advances: $MCHP $SPPI $WETF $ONNN $MELI $CAVM $CTRX $INCY $TTWO $DWA $CRUS $AVNR $LOPE $JDSU $ARCP http://t.co/Vtx6dLy0Nw
31 Oct 14 05:00:04
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31 Oct 14 04:30:02
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31 Oct 14 02:38:03
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31 Oct 14 02:02:11
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31 Oct 14 01:42:44
RT @theflynews: Take-Two hits 52-week high after beating Q2 estimates, raising FY15 outlook $TTWO $ATVI $COOL $EA: Full Story http://t.co/0…
John Michael
31 Oct 14 00:26:32
RT @SeekingAlpha: Take-Two Interactive Q2 2015 Review: Digital And Diversification Driving The Outperformance http://t.co/wrs35X1hOd $TTWO
FOREX Insight
31 Oct 14 00:26:19
RT @SeekingAlpha: Take-Two Interactive Q2 2015 Review: Digital And Diversification Driving The Outperformance http://t.co/wrs35X1hOd $TTWO
Seeking Alpha
31 Oct 14 00:21:20
Take-Two Interactive Q2 2015 Review: Digital And Diversification Driving The Outperformance http://t.co/wrs35X1hOd $TTWO
31 Oct 14 00:18:05
5-star analyst Todd Mitchell from Brean Capital upgraded rating on $TTWO to BUY. Todd has a 67.9% success rate http://t.co/9kialBpzSI
30 Oct 14 23:49:00
Take-Two Interactive Software (TTWO) 25.27 $TTWO Jim Cramer's 'Mad Money' Recap: Here's Why the Bears Were Dea http://t.co/pg1LHngk3m
30 Oct 14 23:36:29
Partner Jet $PJT.V is up 183% this week after Q3 release with more gains coming. Find out why: http://t.co/MEpEjkCm4H $TTWO $WFM $MSTX
Stock Signaling
30 Oct 14 23:01:38
Movers and Shakers: Trading on Major News: $WU $NEM $ABX $EXPE $GG $GRPN $ABC $TTWO $BWA $NOV $TASR $WLT $BG $V $MPC http://t.co/Vtx6dLy0Nw
30 Oct 14 22:22:18
Take-Two Interactive Software Reaches New 1-Year High After Earnings Beat $TTWO http://t.co/4mg0jdR8Wj
30 Oct 14 20:31:11
Take-Two Interactive Software Inc. (TTWO) Jumps 10.83% on October 30 $TTWO http://t.co/De74y6COPQ
US Banking News
30 Oct 14 20:13:04
Take-Two Interactive Software Stock Rating Upgraded by Brean Capital $TTWO http://t.co/XYwoD7gE8g
By  +Follow July 31, 2013 7:04AM



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