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Take-Two Interactive Software, in the Spotlight Soon

Take-Two Interactive Software (Nasdaq: TTWO  ) is expected to report Q1 earnings on July 30. 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 wither -44.4% and EPS will remain in the red.

The average estimate for revenue is $125.8 million. On the bottom line, the average EPS estimate is -$0.56.

Revenue details
Last quarter, Take-Two Interactive Software reported revenue of $303.1 million. GAAP reported sales were much higher than the prior-year quarter's $148.1 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 $0.38. GAAP EPS were $0.24 for Q4 versus -$0.80 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 48.5%, much better than the prior-year quarter. Operating margin was 9.7%, much better than the prior-year quarter. Net margin was 7.5%, much better than the prior-year quarter.

Looking ahead

The full year's average estimate for revenue is $1.86 billion. The average EPS estimate is $2.35.

Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,152 members out of 1,243 rating the stock outperform, and 91 members rating it underperform. Among 318 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 301 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 $16.32.

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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.

Read/Post Comments (2) | Recommend This Article (0)

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  • Report this Comment On July 26, 2013, at 9:27 AM, TelsaRowe wrote:

    "Software and computerized services are being consumed in radically different ways" Oh? How so? Last I checked the next generation (ps4/xbox1) were sold out everywhere, mobile phone games have been around for a decade, and AAA game titles are selling better than they ever were. I imagine it was only appropriate for you to close your hack article with that line of ignorance though. You baby boomers who have not got a clue on the gaming industry seem to only believe what you read and are too lazy to do any real due diligence. AAA titles are in the realm of the now consolidated/consolidating console game publishers. Cheap forgettable crap games have found a new home on mobile.

  • Report this Comment On July 26, 2013, at 12:36 PM, ftfan35 wrote:

    Tesla, To be fair Motley Fool does at least follow video games. Unlike the article I just saw that had Jim Cramer talk about this, and listed it as a sell...because 'I don't like gaming stocks.' It is scary that people listen to blithering idiots like that.

    I think it is fair to say that T2 is going to beat expectations due to carryover from Bioshock as well as success from the latest Civ V Expansion, which everyone seems to ignore.

    It is simply asinine to have a price target of 16.32 however...that is below the current price and before the make hundreds of millions of dollars on the most successful modern video game franchise. A realistic price target is going to be in the range of $25-30, with EPS being aboud 3.5.

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