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Take-Two Raises Guidance, but First It Has to Get Through Q2

Published 08/08/2022, 22:02
© Reuters
TTWO
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By Yasin Ebrahim

Investing.com - Take-Two lifted its full-year guidance Monday, underpinned by a boost from Zynga (NASDAQ:ZNGA), but a softer outlook for the current quarter as well as a surprise fiscal first-quarter loss weighed on investor sentiment.

Take-Two Interactive Software Inc (NASDAQ:TTWO) was 5% lower in after-hours following the report.

The company reported a loss of 76 cents, missing estimates of 87 cents, while revenue of $1.1 billion compared with forecasts for $1.09 billion.

Net Bookings - the net amount of products and services sold digitally or sold-in physically - grew 41% to $1.00 billion.

Looking ahead, the company forecast second-quarter performance that fell shy of Wall Street estimates, but lifted its full-year outlook to reflect the boost from  Zynga, its mobile gaming business.

For fiscal Q2, the company expected EPS in a range of 86 cents to 96 cents a share on revenue of $1.37 billion to $1.42 billion. Net bookings were expected between $1.5 billion to $1.6 billion. That compared with estimates for EPS of $1.50 on revenue of $1.74 billion.

Looking ahead to fiscal 2023, the company raised its guidance on earning and revenue. The company now forecasts losses per share to range from $2.50 to $2.75 on revenue in a range $5.73 billion to $5.83 billion. That compared with prior estimates for EPS in a range of $1.90 to $2.15 on revenue of $3.67 billion to $3.77 billion.

 

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