Take-Two Interactive Software (TTWO) stock is trading higher Friday as the video-game maker's better-than-expected bookings for its fiscal 2024 fourth quarter offsets news the company is delaying the release of Grand Theft Auto VI (GTA VI).
Starting with earnings. In the three months ended March 31, Take-Two said total net bookings decreased 3% year-over-year to $1.35 billion, which exceeded the high-end of its guidance range of $1.27 billion to $1.32 billion.
The bookings also beat analysts' expectations, which called for $1.3 billion, according to Reuters.
Sign up for Kiplinger’s Free E-Newsletters
Profit and prosper with the best of expert advice on investing, taxes, retirement, personal finance and more - straight to your e-mail.
Profit and prosper with the best of expert advice - straight to your e-mail.
However, Take-Two then lowered its bookings guidance for fiscal 2025 to reflect a delay of its GTA VI release until the fall of calendar 2025. The company now anticipates bookings of $5.55 billion to $5.65 billion, down from its previous estimate of "a little above $7 billion," Lainie Goldstein, chief financial officer of Take-Two Interactive, said in the earnings call.
"Looking ahead, we believe that our Company is poised to achieve new levels of success, and we expect to deliver sequential growth in net bookings for fiscal 2025, 2026, and 2027," Take-Take Interactive CEO Strauss Zelnick said in a statement. "As we deliver our pipeline, we are confident that we will drive our scale, enhance our margins, and deliver industry-leading returns for our shareholders."
Where does Take-Two Interactive stock stand with analysts?
Analysts are generally upbeat toward the communication services stock. According to S&P Global Market Intelligence, the average target price for TTWO stock is $175.21, representing implied upside of about 20% to current levels. Additionally, the consensus recommendation is Buy.
Financial services firm Wedbush is unfazed by the delay of GTA VI, reiterating its Buy rating and $190 price target in a May 17 note.
“We kept our fiscal year 2026 estimates unchanged, with GTA VI launching in the December quarter instead of the September quarter in our model," Wedbush analyst Nick McKay says. The analyst expects the launch to drive quarterly sales of 25 million units, though adds that this could be a conservative estimate.
"We are encouraged by the firmer window for GTA VI, and expect Take-Two shares to react positively once gamers and investors alike learn additional details about the title, through features at game shows (perhaps in June) or additional trailers," McKay says.
Wedbush's $190 price target represents implied upside of nearly 30% to current levels.
Related Content
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical TensionThe main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's ChromeAlphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Stock Market Today: Stocks Rally Despite Rising Geopolitical Tension
The main indexes were mixed on Tuesday but closed well off their lows after an early flight to safety.
-
What's at Stake for Alphabet as DOJ Eyes Google's Chrome
Alphabet is higher Tuesday even as antitrust officials at the DOJ support forcing Google to sell its popular web browser. Here's what you need to know.
-
Lowe's Stock Is Falling After Earnings. Here's WhyLowe's stock is lower Tuesday as Wall Street weighs a beat-and-raise quarter against declining revenue. This is what you need to know.
-
Why Walmart Stock's a Buy After Its Beat-And-Raise QuarterWalmart is the best Dow Jones stock Tuesday after the retail giant's solid earnings report and outlook and Wall Street thinks it's just getting started. Here's what they're saying.
-
Winners and Losers of Fed Rate CutsNavigating interest-rate changes can seem daunting, but these areas of the fixed-income market could perform better (or worse) than others.
-
Six Ways to Optimize Your Charitable Giving Before Year-EndAs 2024 winds down, right now is the time to look at how you plan to handle your charitable giving. The sooner you start, the more tax-efficient you can be.
-
How Preferred Stocks Can Boost Your Retirement PortfolioHigher yields, priority on dividend payments and the potential for capital appreciation are just three reasons to consider investing in preferred stocks.
-
Structured Settlement Annuity vs Lump-Sum Payout: Which Is Better?As the use of structured settlement annuities grows, it can be tough to decide whether to take the lump sum to invest or opt instead for guaranteed payments.
