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.
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