Take-Two Interactive Software (TTWO) Stock Rises in After-Hours Trading on Earnings Beat

Take-Two Interactive Software (TTWO) stock is up in after-hours trading after the company reported its 2015 third quarter earnings results.
By Amanda Albright ,

NEW YORK (TheStreet) -- Take-Two Interactive Software (TTWO) - Get Report stock was up by 4.02% to $34.38 in after-hours trading on Thursday, after the company's fiscal 2016 second quarter earnings results beat expectations.

The interactive entertainment developer reported earnings of 30 cents per share, compared to a loss of 44 cents per share for the year-ago period. 

Revenue increased by 175% year over year to $347 million.

Analysts surveyed by Thomson Reuters were expecting the company to report earnings of 15 cents per share on revenue of $318.33 million.

"Our second quarter results were anchored by the series record-breaking launch of NBA 2K16, along with ongoing demand for Grand Theft Auto V and strong growth in recurrent consumer spending," CEO Strauss Zelnick said in a statement. "Our holiday season is off to a great start, including the successful release of WWE 2K16, and we expect the installed base of new-gen consoles to expand further and broaden our global audience."

The company raised its fiscal 2016 earnings outlook to $1 to $1.15 per share, compared to its previous earnings estimate of 75 cents to $1 per share.

Separately, TheStreet Ratings team rates TAKE-TWO INTERACTIVE SFTWR as a Hold with a ratings score of C. TheStreet Ratings Team has this to say about their recommendation:

We rate TAKE-TWO INTERACTIVE SFTWR (TTWO) a HOLD. The primary factors that have impacted our rating are mixed - some indicating strength, some showing weaknesses, with little evidence to justify the expectation of either a positive or negative performance for this stock relative to most other stocks. The company's strengths can be seen in multiple areas, such as its revenue growth, solid stock price performance and good cash flow from operations. However, as a counter to these strengths, we also find weaknesses including deteriorating net income, disappointing return on equity and poor profit margins.

You can view the full analysis from the report here: TTWO

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Any reference to TheStreet Ratings and its underlying recommendation does not reflect the opinion of Jim Cramer, TheStreet or any of its contributors.

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