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.
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.
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.
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.
The full year's average estimate for revenue is $1.18 billion. The average EPS estimate is $0.18.
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.
Software and computerized services are being consumed in radically different ways, on new and increasingly mobile devices. Many old leaders will be left behind. Whether or not Take-Two Interactive Software makes the coming cut, you should check out the company that Motley Fool analysts expect to lead the pack in "The Next Trillion-dollar Revolution." Click here for instant access to this free report.