Take-Two Interactive Software
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Take-Two Interactive Software missed estimates on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue contracted significantly and GAAP earnings per share contracted significantly.
Gross margins expanded, operating margins shrank, net margins dropped.
Take-Two Interactive Software tallied revenue of $236.3 million. The 14 analysts polled by S&P Capital IQ predicted a top line of $248.2 million. Sales were 29% lower than the prior-year quarter's $334.3 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions.
Non-GAAP EPS came in at $0.27. The 13 earnings estimates compiled by S&P Capital IQ predicted $0.24 per share on the same basis. GAAP EPS of $0.32 for Q3 were 29% lower than the prior-year quarter's $0.45 per share.
Source: S&P Capital IQ. Quarterly periods. Figures may be non-GAAP to maintain comparability with estimates.
For the quarter, gross margin was 46.5%, 290 basis points better than the prior-year quarter. Operating margin was 8.6%, 600 basis points worse than the prior-year quarter. Net margin was 6.0%, 620 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $166.1 million. On the bottom line, the average EPS estimate is -$0.17.
Next year's average estimate for revenue is $852.1 million. The average EPS estimate is -$0.30.
The stock has a five-star rating (out of five) at Motley Fool CAPS, with 1,166 members out of 1,254 rating the stock outperform, and 88 members rating it underperform. Among 342 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 325 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 $17.68.
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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 owns shares of Take-Two Interactive Software. Motley Fool newsletter services have recommended buying shares of Take-Two Interactive Software. 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.