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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
Eyang Sukur
29 Nov 14 00:17:15
RT Chayton Falke ChaytonFalke : Top Twenty Recent Exits #14: Sold $TTWO long for a 23.62% gain in 22 days. #trading #TTWO #forex #stocks
Chayton Falke
29 Nov 14 00:15:02
Top Twenty Recent Exits #14: Sold $TTWO long for a 23.62% gain in 22 days. #trading #TTWO #forex #stocks
Eyang Sukur
28 Nov 14 20:16:59
RT Chayton Falke ChaytonFalke :#Russell2000 #recent #market #exit #6: Sold $TTWO long for a 23.62% #gain in 22 days. #TTWO #forex #tradi...
Chayton Falke
28 Nov 14 20:10:06
#Russell2000 #recent #market #exit #6: Sold $TTWO long for a 23.62% #gain in 22 days. #TTWO #forex #trading #stocks
John Turner
28 Nov 14 11:03:07
$TTWO Take-Two Interactive Software, Inc. to Present at BMO Technology & Digital ... http://t.co/M9qceBe2c5
James P Worthy
28 Nov 14 11:03:05
$TTWO What to Watch for When Take-Two Interactive Software Inc. Reports Earnings http://t.co/pgfWTh4Z0U
DennyT
28 Nov 14 10:11:32
TTWO Stock 27.58 Take-Two Interactive Software $TTWO Hit a 52 week high of 28.14 Closing the day 09:45 at 27.5 http://t.co/FQOqUQ7UfZ
DennyT
28 Nov 14 10:11:10
$TTWO TTWO 27.58 Take-Two Interactive Software $TTWO Hit a 52 week high of 28.14 Closing the day 09:45 at 27.58 -0.5 http://t.co/POMwOtdtL3
CW_McNally
28 Nov 14 09:28:50
#watchlist $XEL $SYF $RDN $TIBX $CUBE $EXAS $TTWO $TQNT $BAH #stocks #trend #trending #trendfollowing #stockpicks
Clair Voight
28 Nov 14 07:00:59
$TTWO Take-Two Interactive Software, Inc. to Present at BMO Technology & Digital ... http://t.co/nrE2a90jhV
Peter Bardens
28 Nov 14 07:00:58
$TTWO What to Watch for When Take-Two Interactive Software Inc. Reports Earnings http://t.co/N9t47g5GAt
FonsieTrader
28 Nov 14 04:13:19
Moved Upper Bollinger Band $RTN $SGMS $SHO $SMH $SWKS $TASR $TEL $TTWO $TXN $WPZ $XLNX http://t.co/zD8lPcfmbB
Eric Price
28 Nov 14 00:37:53
RT @_JohnWalsh_: 28/11/14 Long Watch List Part 3 $PEP $PLD $PLL $RMD $RPT $SEIC $SHO $ST $STWD $SWFT $SWKS $TASR $TQNT $TSM $TTWO $TXN $UNH…
California
27 Nov 14 23:42:26
RT @_JohnWalsh_: 28/11/14 Long Watch List Part 3 $PEP $PLD $PLL $RMD $RPT $SEIC $SHO $ST $STWD $SWFT $SWKS $TASR $TQNT $TSM $TTWO $TXN $UNH…
Tweed
27 Nov 14 23:06:49
Some scanner hits and/or ideas for swings: $CMP, $CCL, $TER, $PMCS, $VMEM, $DRH, $IMGN, $TTWO, $ARRY, $XRX, $RFMD, $HA, $PLD, $SGMS, $BEE
Jeff Ki
27 Nov 14 21:52:00
RT @_JohnWalsh_: 28/11/14 Long Watch List Part 3 $PEP $PLD $PLL $RMD $RPT $SEIC $SHO $ST $STWD $SWFT $SWKS $TASR $TQNT $TSM $TTWO $TXN $UNH…
Pierre Langlois
27 Nov 14 21:15:24
RT @JoeyStockPicks: The Best Black Friday Stocks... $TGT $M $JWN $TJX $AMZN $AAPL $GPRO $GME $BBY $ATVI $TTWO $VFC $CST $LOGI
#TeamBlackM
27 Nov 14 19:59:26
RT @JoeyStockPicks: The Best Black Friday Stocks... $TGT $M $JWN $TJX $AMZN $AAPL $GPRO $GME $BBY $ATVI $TTWO $VFC $CST $LOGI
Joey Rosa
27 Nov 14 19:59:03
The Best Black Friday Stocks... $TGT $M $JWN $TJX $AMZN $AAPL $GPRO $GME $BBY $ATVI $TTWO $VFC $CST $LOGI
BlackCabbieTrader
27 Nov 14 19:38:40
28/11/14 Long Watch List Part 3 $PEP $PLD $PLL $RMD $RPT $SEIC $SHO $ST $STWD $SWFT $SWKS $TASR $TQNT $TSM $TTWO $TXN $UNH $WFC $WMC $WY
Sleek Money
27 Nov 14 10:41:51
Take-Two Interactive Software Hits New 52-Week High at $28.20 $TTWO http://t.co/NaWDll4Rs2
US Banking News
27 Nov 14 10:37:28
Take-Two Interactive Software Hits New 52-Week High at $28.20 $TTWO http://t.co/Q31l5CO7bE
FonsieTrader
27 Nov 14 08:46:34
Moved Upper Bollinger Band 4/4 $RTN $SGMS $SHO $SMH $SWKS $TASR $TEL $TTWO $TXN $WPZ $XLNX http://t.co/RlR0tSop8d $STUDY
Jack Trader
27 Nov 14 08:30:43
$TTWO What to Watch for When Take-Two Interactive Software Inc. Reports Earnings http://t.co/YwxhPbBzl8
equities.com
27 Nov 14 07:41:25
Take-Two Interactive Software Inc. (TTWO) Hits New 52-week High During November 26 Session $TTWO http://t.co/MptzES50fK
Maksim Grachev
27 Nov 14 06:25:28
RT @_JohnWalsh_: 26/11/14 Long Watch List Part 5 $TNET $TQNT $TTWO $TXT $VDSI $VFC $WAB $WERN $WMC $WRB $WY
Large Void Bot
27 Nov 14 06:00:12
Popular: $UWTI, $DNO, $SCO, $CST, $GG, $GREK, $SNE, $UCO, $HMC, $GDXJ, $DVA, $JBHT, $BRK.B, $KO, $TTWO, $JWN
Jake13
27 Nov 14 05:26:30
TTWO Year to date has changed +62.12% percent. +25.60% in the last 30 days. $TTWO Take-Two Interactive Softwar http://t.co/SyefAi6BxZ
Jake13
27 Nov 14 05:26:06
$TTWO TTWO Stock year to date has changed +62.12% percent. +25.60% in the last 30 days. $TTWO Take-Two Interactive S http://t.co/F039W64zN6
iHangout
27 Nov 14 04:34:10
chartguy89: $TTWO Take-Two Interactive Software Inc.: TTWO 28.16 Take-Two Interactive Software Stock http://t.co/wqszELplHu
BP Radigan
26 Nov 14 13:33:59
RT @_JohnWalsh_: 26/11/14 Long Watch List Part 5 $TNET $TQNT $TTWO $TXT $VDSI $VFC $WAB $WERN $WMC $WRB $WY
Daily Contracts
26 Nov 14 11:38:01
Real-Time feed of company contracts, original agreements and executive updates from Take-Two Interactive $TTWO http://t.co/iKNOJqcsWD
DennyT
26 Nov 14 10:59:06
TTWO Stock 27.83 Take-Two Interactive Software $TTWO Hit a 52 week high of 27.94 Closing the day 09:44 at 27.8 http://t.co/o6gKCz3pp3
DennyT
26 Nov 14 10:58:39
$TTWO TTWO 27.83 Take-Two Interactive Software $TTWO Hit a 52 week high of 27.94 Closing the day 09:44 at 27.83 -0.0 http://t.co/FkQABBfmcA
Asif Suria
26 Nov 14 10:47:53
Started Jan $VIX call spreads. Sold $RAX. Sold covered calls on $AAPL $YHOO and $TTWO
David Blair
26 Nov 14 09:54:29
$TTWO from 11/18. http://t.co/g17d3bpVKY Still moving higher.
Market Int Center
26 Nov 14 09:15:04
TakeTwo Interactive $TTWO Trading Near $27.45 Support Level ( http://t.co/zgvE1liP0a )
Jake13
26 Nov 14 08:59:19
TTWO Year to date has changed +60.51% percent. +24.35% in the last 30 days. $TTWO Take-Two Interactive Softwar http://t.co/nnxy7XW8zT
Jake13
26 Nov 14 08:58:55
$TTWO TTWO Stock year to date has changed +60.51% percent. +24.35% in the last 30 days. $TTWO Take-Two Interactive S http://t.co/FLh6hUlAvl
NelsNYC
26 Nov 14 08:05:01
RT @dathanpyle: Holiday shopping watchlist: $MAT $HAS $JAKK $LF $DIS $SNE $MSFT $AAPL $ATVI $TTWO $EA $JCP $WMT $TGT $KSS $M $... http://t.…
Dathan Pyle
26 Nov 14 08:02:28
Holiday shopping watchlist: $MAT $HAS $JAKK $LF $DIS $SNE $MSFT $AAPL $ATVI $TTWO $EA $JCP $WMT $TGT $KSS $M $... http://t.co/YYRge1kK4C
chartguy89
26 Nov 14 07:54:37
TTWO 27.88 Take-Two Interactive Software Stock Charts $TTWO Last Updated: 11/25/14 Last price: 27.88 Total vol http://t.co/fHSGS712YN
chartguy89
26 Nov 14 07:54:21
$TTWO TTWO 27.88 Take-Two Interactive Software Stock Charts $TTWO Last Updated: 11/25/14 Last price: 27.88 Total vol http://t.co/GTrr5fpRZN
Colin Sebastian
26 Nov 14 07:41:47
‘Broken’ Video Games Hurt Industry Sales Ahead of the Holidays http://t.co/mn9EmhIWdP $EA $MSFT $TTWO $ATVI
equities.com
26 Nov 14 07:02:05
Take-Two Interactive Software Inc. (TTWO) Hits New 52-week High During November 25 Session $TTWO http://t.co/3Wggiwt2Fm
John Dianovich
26 Nov 14 04:53:43
$TTWO All time high in sight.
Hector
25 Nov 14 23:21:03
RT @_JohnWalsh_: 26/11/14 Long Watch List Part 5 $TNET $TQNT $TTWO $TXT $VDSI $VFC $WAB $WERN $WMC $WRB $WY
Gloria
25 Nov 14 20:32:55
RT @_JohnWalsh_: 26/11/14 Long Watch List Part 5 $TNET $TQNT $TTWO $TXT $VDSI $VFC $WAB $WERN $WMC $WRB $WY
It's in the mail
25 Nov 14 19:11:43
RT @_JohnWalsh_: 26/11/14 Long Watch List Part 5 $TNET $TQNT $TTWO $TXT $VDSI $VFC $WAB $WERN $WMC $WRB $WY
BlackCabbieTrader
25 Nov 14 18:39:53
26/11/14 Long Watch List Part 5 $TNET $TQNT $TTWO $TXT $VDSI $VFC $WAB $WERN $WMC $WRB $WY
				
				
By  +Follow July 31, 2013 7:04AM
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