What happened
Shares of Take-Two Interactive (TTWO 0.41%) were up 10.6% as of 12:15 p.m. ET on Tuesday after the company delivered better-than-expected earnings numbers following the market close on Monday. Earnings per share came in at $0.95, surpassing the consensus analyst estimate of $0.65.
Investors might have been more enthusiastic about management's early guidance for fiscal 2023 (ending in March), which calls for record operating results. After the jump in the share price, the stock is now down 31% year to date and up 74% over the last five years.
NASDAQ: TTWO
Key Data Points
So what
For the fiscal fourth quarter, revenue of $839 million grew 11% year over year. The largest contributors to revenue were the usual suspects: NBA 2K, Grand Theft Auto V, Grand Theft Auto Online, Red Dead Redemption 2, and Red Dead Online. Take-Two also credited Tiny Tina's Wonderland and mobile titles Top Eleven and Two Dots.
Total bookings for the fiscal year came in at $3.41 billion, down from $3.55 billion in the prior year. While players are spending more time in Take-Two's games than before the pandemic, the company experienced a "moderation of the trends" during the year that benefited the business during the pandemic's peak.
Image source: Getty Images.
Now what
Bookings are expected to range from $3.75 billion to $3.85 billion in fiscal 2023, which is a new record for the company. This would represent 11% growth at the midpoint of the range. Take-Two is releasing more than twice the number of games it delivered last year, which factors into management's guidance. This is part of the long-term growth strategy to release dozens of new titles through fiscal 2025.
Overall, with recent earnings results coming in ahead of expectations, investors are likely looking at management's guidance with a strong sense of optimism about what the future holds for this leading video game publisher.
