TSC Staff
SAN FRANCISCO - Take-Two Interactive(TTWO Quote - Cramer on TTWO - Stock Picks) swung to a third-quarter profit as sales of the company's blockbuster Grand Theft Auto IV video game helped double revenue.
The company earned $51.8 million, or 67 cents a share, in the quarter ended July 31, compared to a loss of $58.5 million, or 81 cents a share, a year earlier. Excluding items, the company earned 93 cents a share, blowing past analysts' consensus estimate of 54 cents a share. Revenue rose to $433.8 million from $206.4 million. The Street was expecting $381.3 million. The company said sales were led by Grand Theft Auto IV, as well as Top Spin 3 and Sid Meier's CivilizationRevolution. Take-Two's blowout quarter won't be repeated in the fourth quarter, as the company's guidance missed estimates, due primarily to the solid third-quarter results and product shifting. For the fiscal year, Take-Two said it would earn $2.08 to $2.12 a share on revenue of $1.5 billion to $1.55 billion. Analysts were expecting earnings of $1.83 a share on revenue of $1.5 billion. Shares of Take-Two were up 35 cents, or 1.5%, to $23.58 in recent after-hours trading. Take-Two has been the target of a hostile takeout offer by rival Electronic Arts(ERTS Quote - Cramer on ERTS - Stock Picks), which was consistently rejected by Take-Two. EA eventually let its offer expire, but the two companies have recently entered a confidentiality agreement.
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