Does The Street Have Take-Two Interactive Software Figured Out? (TTWO)

Does The Street Have Take-Two Interactive Software Figured Out?

Take-Two Interactive Software (Nasdaq: TTWO ) is expected to report Q3 earnings on Feb. 5. Here's what Wall Street wants to see:

The 10-second takeaway
Comparing the upcoming quarter to the prior-year quarter, average analyst estimates predict Take-Two Interactive Software's revenues will grow 55.5% and EPS will grow 107.4%.

The average estimate for revenue is $367.5 million. On the bottom line, the average EPS estimate is $0.56.

Revenue details
Last quarter, Take-Two Interactive Software recorded revenue of $273.1 million. GAAP reported sales were much higher than the prior-year quarter's $107.0 million.

Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.

EPS details
Last quarter, non-GAAP EPS came in at $0.11. GAAP EPS were -$0.15 for Q2 against -$0.57 per share for the prior-year quarter.

Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.

Recent performance
For the preceding quarter, gross margin was 42.0%, 1,180 basis points better than the prior-year quarter. Operating margin was -1.4%, 3,740 basis points better than the prior-year quarter. Net margin was -4.6%, 3,970 basis points better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.18 billion. The average EPS estimate is $0.18.

Investor sentiment
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,139 members out of 1,228 rating the stock outperform, and 89 members rating it underperform. Among 290 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 273 give Take-Two Interactive Software a green thumbs-up, and 17 give it a red thumbs-down.

Of Wall Street recommendations tracked by S&P Capital IQ, the average opinion on Take-Two Interactive Software is outperform, with an average price target of $14.67.

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Seth Jayson had no position in any company mentioned here at the time of publication. You can view his stock holdings here. He is co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool recommends Take-Two Interactive. Try any of our Foolish newsletter services free for 30 days. We Fools may not all hold the same opinions, but we all believe that considering a diverse range of insights makes us better investors. The Motley Fool has a disclosure policy.

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