Take-Two Interactive Software (Nasdaq: TTWO) is expected to report Q1 earnings on July 31. 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 compress -23.1% and EPS will remain in the red.
The average estimate for revenue is $257.1 million. On the bottom line, the average EPS estimate is -$0.65.
Revenue details
Last quarter, Take-Two Interactive Software logged revenue of $148.1 million. GAAP reported sales were 19% lower than the prior-year quarter's $182.3 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 -$0.60. GAAP EPS were -$0.80 for Q4 against -$0.39 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 21.4%, 1,270 basis points worse than the prior-year quarter. Operating margin was -41.3%, 3,030 basis points worse than the prior-year quarter. Net margin was -45.1%, 3,300 basis points worse than the prior-year quarter.
Looking ahead
The full year's average estimate for revenue is $1.83 billion. The average EPS estimate is $2.29.
Investor sentiment
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,149 members out of 1,238 rating the stock outperform, and 89 members rating it underperform. Among 268 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 248 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 $18.88.
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