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Take-Two Earnings Top Expectations on Strong Gaming Demand

Revenue climbed 10% to $839.4 million in the fiscal 2021 fourth quarter ended March 31, beating the analyst consensus of $661.4 million.
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Video game publisher Take-Two Interactive Software  (TTWO) - Get Take-Two Interactive Software Inc. Report latest earnings easily beat expectations after the bell Tuesday, on strong pandemic-driven demand in the quarter.

Revenue climbed 10% to $839.4 million in the fiscal 2021 fourth quarter ended March 31 from $760.5 million in the year-ago quarter. The FactSet analyst consensus called for revenue of $661.4 million in the latest quarter.

Net income rose to $218.812 million, or $1.88 a share, int the latest quarter from $122.722 million, or $1.07 a share last year. The analyst consensus called for profit of 97 cents in the latest quarter.

Take-Two recently stood at $168.16, up 0.28% in after-hours trading. It has fallen 14% in the past three months, with investor enthusiasm dimming as the pandemic wanes.

“Our strong fourth quarter results concluded an exceptional year for our organization,” said Strauss Zelnick, chief executive of Take-Two.

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“We delivered record operating results, including net bookings of approximately $3.6 billion and adjusted unrestricted operating cash flow of $920 million.”

For fiscal 2022, Take-Two forecasts revenue of $3.14 billion to $3.24 billion and profit of $228 million to $257 million.

In February, analysts issued generally positive commentaries for the video game maker after it released a strong earnings report.

Morgan Stanley analyst Brian Nowak had a $215 price target and an overweight rating for Take-Two. The company’s results and earnings-guidance increase “highlight continued strong gaming trends, as NBA 2K and GTA [Grand Theft Auto] drive EPS [earnings per share],” he wrote. “We remain positive given the earnings power into 2021.”

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