This Day On The Street
Continue to site right-arrow
ADVERTISEMENT
This account is pending registration confirmation. Please click on the link within the confirmation email previously sent you to complete registration.
Need a new registration confirmation email? Click here
Stocks Under $10 with 50-100% upside potential - 14 days FREE!

Take-Two Softens Image, Ignites Shares

"What I like about it is it shows that Take-Two, which was a company that was really on the cutting edge of developing games for the older gamers, recognizes that the underfollowed and underappreciated niche is now the undergamer," Spiegel added. "Undergamers," or younger gamers, become more important because with the video game console market maturing, they can now afford to buy consoles and games.

Including the distribution agreement with TDK, Take-Two raised its guidance for the fiscal year ending Oct. 31 to $2.30 a share in earnings on $1.015 billion in revenue. Analysts were projecting Take-Two would earn $2.29 a share on $984.6 million in revenue in fiscal year 2003.

The company also offered initial guidance for fiscal year 2004, assuming the TDK acquisition will add about $35 million in sales but have no material effect on net income. Take-Two projects 2004 earnings will come in at $2.68 a share on $1.18 billion in revenue. That's significantly higher than the consensus estimate of $2.48 a share on revenue of $1.05 billion for fiscal year 2004.

For the historically strong first quarter 2004 ended Jan. 31, Take-Two expects earnings of $1.21 a share on $412 million in revenue. Analysts were expecting higher earnings -- at $1.27 a share -- on revenue of $402.6 million in the first quarter 2004.

Meanwhile, in other video game industry news, the largest video game maker, Electronic Arts (ERTS), was downgraded Wednesday to hold from buy by Wedbush Morgan Securities analyst Michael Pachter, who said the stock is currently fairly valued.

Pachter noted that the stock has appreciated 23.4% since mid-June and 72% in the past six months to close Tuesday at an all-time high of $91. Although he believes the company has the deepest portfolio in the industry and will gain market share in the next year, Pachter cautioned that he no longer feels there is room for significant price appreciation over the next six months.

2 of 3

Select the service that is right for you!

COMPARE ALL SERVICES
Action Alerts PLUS
Try it NOW

Jim Cramer and Stephanie Link actively manage a real portfolio and reveal their money management tactics while giving advanced notice before every trade.

Product Features:
  • $2.5+ million portfolio
  • Large-cap and dividend focus
  • Intraday trade alerts from Cramer
  • Weekly roundups
TheStreet Quant Ratings
Try it NOW
Only $49.95/yr

Access the tool that DOMINATES the Russell 2000 and the S&P 500.

Product Features:
  • Buy, hold, or sell recommendations for over 4,300 stocks
  • Unlimited research reports on your favorite stocks
  • A custom stock screener
  • Upgrade/downgrade alerts
Stocks Under $10
Try it NOW

David Peltier, uncovers low dollar stocks with extraordinary upside potential that are flying under Wall Street's radar.

Product Features:
  • Model portfolio
  • Stocks trading below $10
  • Intraday trade alerts
  • Weekly roundups
Dividend Stock Advisor
Try it NOW

Jim Cramer's protege, David Peltier, identifies the best of breed dividend stocks that will pay a reliable AND significant income stream.

Product Features:
  • Diversified model portfolio of dividend stocks
  • Alerts when market news affect the portfolio
  • Bi-weekly updates with exact steps to take - BUY, HOLD, SELL
Real Money Pro
Try it NOW

All of Real Money, plus 15 more of Wall Street's sharpest minds delivering actionable trading ideas, a comprehensive look at the market, and fundamental and technical analysis.

Product Features:
  • Real Money + Doug Kass Plus 15 more Wall Street Pros
  • Intraday commentary & news
  • Ultra-actionable trading ideas
Options Profits
Try it NOW

Our options trading pros provide daily market commentary and over 100 monthly option trading ideas and strategies to help you become a well-seasoned trader.

Product Features:
  • 100+ monthly options trading ideas
  • Actionable options commentary & news
  • Real-time trading community
  • Options TV
To begin commenting right away, you can log in below using your Disqus, Facebook, Twitter, OpenID or Yahoo login credentials. Alternatively, you can post a comment as a "guest" just by entering an email address. Your use of the commenting tool is subject to multiple terms of service/use and privacy policies - see here for more details.
Submit an article to us!

Markets

DOW 17,648.61 +291.74 1.68%
S&P 500 2,046.96 +34.07 1.69%
NASDAQ 4,722.2550 +77.9430 1.68%

Brokerage Partners

Rates from Bankrate.com

  • Mortgage
  • Credit Cards
  • Auto

Free Newsletters from TheStreet

My Subscriptions:

After the Bell

Before the Bell

Booyah! Newsletter

Midday Bell

TheStreet Top 10 Stories

Winners & Losers

Register for Newsletters
Top Rated Stocks Top Rated Funds Top Rated ETFs