Take-Two Halted: FYQ4 Rev Misses, Q2 View Crushes Consensus, Year
View Misses By Tiernan Ray
Shares of video game maker Take-Two Interactive
Software (TTWO), makers of the
“Grand Theft Auto” titles, were halted
this afternoon in late trading just before
the company announced a very mixed report:
fiscal Q4 revenue missed analysts’ expectations, but profit
beat; the forecast for this quarter’s results is much, much
higher than consensus; and the forecast for year revenue and profit
is well below consensus.
Revenue in the three months ended in March rose 83%, year over
year, to $427.7 million, on a non-GAAP basis, yielding EPS of of 49
cents, excluding some costs.
Analysts had been modeling $465 million in revenue and 28 cents
EPS.
The company also said it raised its share buyback authorization
to 10 million shares in total.
CEO Strauss Zelnick called the results
“strong” and an “outstanding close to one of our
Company’s best years ever,” and said the company
“achieved record digitally-delivered revenue, including our
highest-ever revenues from recurrent consumer spending.
Zelnick added the year is “off to a great start,
highlighted by the April launch of Grand Theft Auto V for the PC,
which has exceeded our expectations.”
“Beyond fiscal 2016, we have a robust development pipeline
and our Company is well-positioned to deliver growth and margin
expansion over the long-term.”
For the current quarter, the company sees
revenue of $325 million to $350 million, and EPS of 25 cents to 35
cents, well above the average estimate for $207 million and a
penny-per-share in profit,
For this fiscal year, the company sees revenue of $1.3 billion
to $1.4 billion, below consensus for $1.51 billion, with EPS
projected in a range of 75 cents to $1, below the consensus of
$1.21 per share.
Take-Two shares were at $24.20 in late trading when the halt was
put in; the stock is set to resume trading at 4:25 pm, Eastern
time.