Can Take-Two Interactive Software Beat These Numbers?

Take-Two Interactive Software (Nasdaq: TTWO  ) is expected to report Q4 earnings on May 13. 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 88.9% and EPS will turn positive

The average estimate for revenue is $279.8 million. On the bottom line, the average EPS estimate is $0.23.

Revenue details
Last quarter, Take-Two Interactive Software logged revenue of $415.8 million. GAAP reported sales were 76% higher than the prior-year quarter's $236.3 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 $0.67. GAAP EPS of $0.66 for Q3 were 313% higher than the prior-year quarter's $0.16 per share.

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 48.0%, 150 basis points better than the prior-year quarter. Operating margin was 19.5%, much better than the prior-year quarter. Net margin was 17.2%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.20 billion. The average EPS estimate is $0.19.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,146 members out of 1,236 rating the stock outperform, and 90 members rating it underperform. Among 303 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 283 give Take-Two Interactive Software a green thumbs-up, and 20 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 $15.15.

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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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