Take-Two Interactive Software
The 10-second takeaway
For the quarter ended June 30 (Q1), Take-Two Interactive Software whiffed on revenues and missed expectations on earnings per share.
Compared to the prior-year quarter, revenue dropped significantly and GAAP loss per share grew.
Margins contracted across the board.
Take-Two Interactive Software logged revenue of $226.1 million. The 15 analysts polled by S&P Capital IQ predicted a top line of $256.1 million on the same basis. GAAP reported sales were 32% lower than the prior-year quarter's $334.4 million.
Source: S&P Capital IQ. Quarterly periods. Dollar amounts in millions. Non-GAAP figures may vary to maintain comparability with estimates.
EPS came in at -$1.16. The 15 earnings estimates compiled by S&P Capital IQ predicted -$0.65 per share. GAAP EPS were -$1.30 for Q1 versus -$0.11 per share for the prior-year quarter.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 17.4%, 1,940 basis points worse than the prior-year quarter. Operating margin was -44.6%, 4,400 basis points worse than the prior-year quarter. Net margin was -49.0%, 4,640 basis points worse than the prior-year quarter.
Next quarter's average estimate for revenue is $237.0 million. On the bottom line, the average EPS estimate is $0.14.
Next year's average estimate for revenue is $1.82 billion. The average EPS estimate is $2.29.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,152 members out of 1,242 rating the stock outperform, and 90 members rating it underperform. Among 269 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 249 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 $17.87.
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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 the co-advisor of Motley Fool Hidden Gems, which provides new small-cap ideas every month, backed by a real-money portfolio. The Motley Fool has no positions in the stocks mentioned above. Motley Fool newsletter services recommend Take-Two Interactive. Try any of our Foolish newsletter services free for 30 days. We Fools don't 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.