Take-Two Interactive Software
The 10-second takeaway
For the quarter ended March 31 (Q4), Take-Two Interactive Software beat expectations on revenues and beat expectations on earnings per share.
Compared to the prior-year quarter, revenue grew significantly. Non-GAAP earnings per share grew. GAAP earnings per share increased.
Margins grew across the board.
Take-Two Interactive Software notched revenue of $303.1 million. The 16 analysts polled by S&P Capital IQ predicted sales of $279.0 million on the same basis. GAAP reported sales were much higher than the prior-year quarter's $148.1 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 $0.38. The 17 earnings estimates compiled by S&P Capital IQ averaged $0.23 per share. Non-GAAP EPS were $0.38 for Q4 versus -$0.60 per share for the prior-year quarter. GAAP EPS were $0.24 for Q4 versus -$0.80 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 48.5%, much better than the prior-year quarter. Operating margin was 9.7%, much better than the prior-year quarter. Net margin was 7.5%, much better than the prior-year quarter. (Margins calculated in GAAP terms.)
Next quarter's average estimate for revenue is $195.0 million. On the bottom line, the average EPS estimate is -$0.09.
Next year's average estimate for revenue is $1.78 billion. The average EPS estimate is $2.24.
The stock has a four-star rating (out of five) at Motley Fool CAPS, with 1,145 members out of 1,236 rating the stock outperform, and 91 members rating it underperform. Among 301 CAPS All-Star picks (recommendations by the highest-ranked CAPS members), 284 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 $16.32.
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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 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.