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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
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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
Ticker Report
19 Aug 14 17:45:51
Take-Two Interactive Software Director Sells $40,925 in Stock $TTWO http://t.co/UxPtdkJKb0
US Banking News
19 Aug 14 17:40:03
Take-Two Interactive Software Director Sells $40,925 in Stock $TTWO http://t.co/yydFa6D1zs
Stock News Guru
19 Aug 14 14:51:05
$TTWO: Take-Two's Q1 Loss Narrower than Expected, Revenues Beat http://t.co/6Mm1lR1An5 http://t.co/IHlOyEL7Gx
$Stocknewsalerts
19 Aug 14 14:07:44
$TTWO ALERT: New Take-Two Interactive Software, Inc. SEC Filing From our Stock News Alerts App
john smith
19 Aug 14 14:07:30
$TTWO - Statement of Changes in Beneficial Ownership (4) http://t.co/Lhx317BjFQ
john smith
19 Aug 14 14:05:21
$TTWO - Statement of Changes in Beneficial Ownership (4) http://t.co/pW0bKq83AO
Market Int Center
19 Aug 14 11:31:00
TakeTwo Interactive $TTWO Trading Near $22.33 Resistance Level ( http://t.co/pTJLUEESVD )
Syed Waqas Nabi
19 Aug 14 08:00:11
A bullish Big MAC (Bullish) has occurred at 10:15 AM Aug 19 at $22.23 on Take-Two Interactive Software Inc (TTWO) $TTWO
Business News
19 Aug 14 06:51:05
$TTWO: GTA Maker Take-Two Falls On Weak Revenue Outlook http://t.co/4NAdfsaLqB http://t.co/CoK10tekr9
Christopher Angus
19 Aug 14 06:10:02
Stocks near Trendline Support: $CLNT, $PED, $TTWO, $MUB
John T
18 Aug 14 23:25:00
$TTWO crawled back up to 22. Watching the old 22.40 level.
William A. Cocke
18 Aug 14 17:04:48
Good gains Monday!! And Disney did awesome today!! $CLNE $COOL $CWCO $DIS $DNAX $MSFT $PHOT $TTWO $ZNGA. #stockmarket
Wall Street Hip Hop
18 Aug 14 14:30:15
$TTWO...GTA 5′s PC and next-gen success is inevitable says publisher Take-Two Interactive http://t.co/RpDl1JJAKx
Daily Contracts
18 Aug 14 10:29:02
Real-Time feed of company contracts, original agreements and executive updates from Take-Two Interactive $TTWO http://t.co/SRIojERxDC
Biz News Pioneer
18 Aug 14 09:51:04
$TTWO: Analyst Upgrades: Activision Blizzard, Inc., Take-Two Interactive Software ... http://t.co/SFB2CkonLN http://t.co/JNozTromrT
Samuel Brown
18 Aug 14 09:30:34
$TTWO GTA Maker Take-Two Falls On Weak Revenue Outlook http://t.co/uq8Mgnhrl1
Harry Walkman
18 Aug 14 07:01:10
$TTWO GTA Maker Take-Two Falls On Weak Revenue Outlook http://t.co/DNEIsYS7y0
Colin Macleod
17 Aug 14 16:49:48
August 15 2014 Candlestick Patterns: Dark Cloud Cover http://t.co/3wwwPsBJ9B $JCP $TWTR $X $PBCT $XHB $TTWO
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15 Aug 14 14:34:04
$TTWO - Evolve Wins Gamescom 2014 ‘Best of Show’ Award http://t.co/XRPF2fW1Ab
BV Technology
15 Aug 14 14:32:08
$TTWO Evolve Wins Gamescom 2014 ‘Best of Show’ Award.. http://t.co/6kQtlNH0PY
Market News
15 Aug 14 13:51:04
$TTWO: Sizzling Gains- Take-Two Interactive Software, Inc. (NASDAQ:TTWO), Globus ... http://t.co/PhY5BO9mur http://t.co/aUjGUTdNWb
$Stocknewsalerts
15 Aug 14 13:43:01
$TTWO ALERT: New Take-Two Interactive Software, Inc. SEC Filing From our Stock News Alerts App
john smith
15 Aug 14 13:37:16
$TTWO - Statement of Changes in Beneficial Ownership (4) http://t.co/Uv8ID3RNHi
john smith
15 Aug 14 13:35:19
$TTWO - Statement of Changes in Beneficial Ownership (4) http://t.co/p5Pa9RrZYJ
john smith
15 Aug 14 13:35:16
$TTWO - Statement of Changes in Beneficial Ownership (4) http://t.co/OgRuIsa3ic
john smith
15 Aug 14 13:35:13
$TTWO - Statement of Changes in Beneficial Ownership (4) http://t.co/SgfJGMTNjN
john smith
15 Aug 14 13:35:11
$TTWO - Statement of Changes in Beneficial Ownership (4) http://t.co/K2OkF1pblc
Jonathan Giorgis
15 Aug 14 08:20:05
RT @OptionsHawk: Video Game Sales +16% in July - Hot Sector Keeps Chugging Along $EA $TTWO $ATVI http://t.co/RrykSEwCIa
Anthony
15 Aug 14 06:47:26
RT @OptionsHawk: Video Game Sales +16% in July - Hot Sector Keeps Chugging Along $EA $TTWO $ATVI http://t.co/RrykSEwCIa
Donnie Sanson
15 Aug 14 04:51:28
RT @OptionsHawk: Video Game Sales +16% in July - Hot Sector Keeps Chugging Along $EA $TTWO $ATVI http://t.co/RrykSEwCIa
Bulls vs Bears
15 Aug 14 03:51:04
$TTWO: Bull of the Day: Take Two (TTWO) http://t.co/yhm78eNJ9v http://t.co/wcWJoyd2ke
moderneconomist.com
15 Aug 14 03:47:50
RT @OptionsHawk: Video Game Sales +16% in July - Hot Sector Keeps Chugging Along $EA $TTWO $ATVI http://t.co/RrykSEwCIa
AlphaNotBeta
15 Aug 14 03:44:52
$EA $ATVI $TTWO $GME U.S. Video Game Sales Rise 16% on New Console Spending. http://t.co/HTimMxkDgV
Ug Nd
15 Aug 14 03:40:10
RT @OptionsHawk: Video Game Sales +16% in July - Hot Sector Keeps Chugging Along $EA $TTWO $ATVI http://t.co/RrykSEwCIa
Joe Kunkle
15 Aug 14 03:31:52
Video Game Sales +16% in July - Hot Sector Keeps Chugging Along $EA $TTWO $ATVI http://t.co/RrykSEwCIa
ZOZO
15 Aug 14 03:03:21
$ATVI $EA $GME $TTWO July NPD video game software sales fell 15%, says Piper Jaffray
The Fly
15 Aug 14 03:01:26
$ATVI $EA $GME $TTWO July NPD video game software sales fell 15%, says Piper Jaffray: Full Story http://t.co/sHwmSutISi
Ro Patel
14 Aug 14 20:14:47
In July, US consumers spent $514.3M on new gaming h/ware, s/tware, & accessories vs $443.1M July 2013 - $SNE $MSFT $TTWO $EA
Market Compass
14 Aug 14 16:51:03
$TTWO: Take-Two's Q1 Loss Narrower than Expected, Revenues Beat http://t.co/cBBTaByPu6 http://t.co/o9Dds6xRug
G. Thomas Lackey Jr
14 Aug 14 16:45:08
August 14, 2014 RS Movers http://t.co/xoc3LFdLM4 $IYE $IEO $TTWO $MU $AMAT $JAZZ $ETFC $MHK $SNDK $FE $TFM $CREE $PXD $EOG $M $CSCO
Zen Trader
14 Aug 14 14:23:30
$TTWO up 2 bucks since charted last Saturday, some challenges upcoming on this chart post here: http://t.co/qWNC6Yyudm Nice candle today tho
Zacks.com
14 Aug 14 13:38:49
Make sure you check out our video game roundup. $SNE $MSFT $ATVI $TTWO $ZNGA $EA $GLUU $KING http://t.co/MmvbHMz0E0
Lucretia
14 Aug 14 13:30:36
$TTWO GTA Maker Take-Two Falls On Weak Revenue Outlook http://t.co/xPaaaGyKfS
Long-Short Hedgie
14 Aug 14 12:19:21
#Bot Sept 22 Calls $TTWO
Financial News
14 Aug 14 11:51:04
$TTWO: Take-Two Interactive Software Upgraded to “Outperform” by Zacks (TTWO) http://t.co/HPSmfI4FJu http://t.co/tyxIdfUsKd
Joe Kunkle
14 Aug 14 11:16:06
$TTWO on 2/4 traded 25,000 Sep. $22/$13 bull risk reversals for $0.20, still in OI, some coming in for just the 22 calls now
Daily Contracts
14 Aug 14 09:35:02
Real-Time feed of company contracts, original agreements and executive updates from Take-Two Interactive $TTWO http://t.co/SRIojERxDC
takethisbet
14 Aug 14 08:40:04
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takethisbet
14 Aug 14 08:40:03
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TickerChirp
14 Aug 14 07:38:05
The Most Popular in Twitter Related to $TTWO on 08/14/2014 http://t.co/GcxJo3jCaW
				
				
By  +Follow July 31, 2013 7:04AM
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