Take-Two Interactive Software
The 10-second takeaway
For the quarter ended Dec. 31 (Q3), Take-Two Interactive Software beat expectations on revenues and crushed expectations on earnings per share.
Compared to the prior-year quarter, revenue increased significantly and GAAP earnings per share expanded significantly.
Margins expanded across the board.
Take-Two Interactive Software tallied revenue of $415.8 million. The 16 analysts polled by S&P Capital IQ predicted a top line of $364.0 million on the same basis. GAAP reported sales were 76% higher than the prior-year quarter's $236.3 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 $0.67. The 16 earnings estimates compiled by S&P Capital IQ predicted $0.55 per share. GAAP EPS of $0.66 for Q3 were 313% higher than the prior-year quarter's $0.16 per share.
Source: S&P Capital IQ. Quarterly periods. Non-GAAP figures may vary to maintain comparability with estimates.
For the quarter, gross margin was 48.0%, 150 basis points better than the prior-year quarter. Operating margin was 19.5%, 1,090 basis points better than the prior-year quarter. Net margin was 17.2%, 1,120 basis points better than the prior-year quarter.
Next quarter's average estimate for revenue is $301.3 million. On the bottom line, the average EPS estimate is $0.33.
Next year's average estimate for revenue is $1.18 billion. The average EPS estimate is $0.16.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,140 members out of 1,230 rating the stock outperform, and 90 members rating it underperform. Among 295 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 277 give Take-Two Interactive Software a green thumbs-up, and 18 give it a red thumbs-down.
Looking for alternatives to Take-Two Interactive Software? It takes more than great companies to build a fortune for the future. Learn the basic financial habits of millionaires next door and get focused stock ideas in our free report, "3 Stocks That Will Help You Retire Rich." Click here for instant access to this free report.
- Add Take-Two Interactive Software to My Watchlist.
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.