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Take-Two Interactive Shares Tank on Earnings Miss

Take-Two's strong guidance wasn't enough to keep investors from selling the stock.

Shares of video game publisher Take-Two Interactive fell after the company missed earnings expectations, but guided for higher revenue and earnings than expected for the current quarter. 

The stock fell 8.41% to $117 a share in postmarket trading Thursday, after having risen 5.78% in regular trading hours. 

Earnings per share for the company's fiscal year 2019 third quarter came in at an adjusted $1.43, missing analyst's expectations of $1.73. Revenue was $930.13 million, beating Wall Street estimates of $920 million. 

"Throughout the 2019 holiday season, we experienced robust demand for our offerings that drove third quarter operating results solidly within our increased outlook,” said CEO Strauss Zelnick. “Highlights included the performance of Grand Theft Auto Online and Grand Theft Auto V, NBA 2K20, Red Dead Redemption 2 and Red Dead Online, The Outer Worlds and Borderlands 3, reflecting our ability to deliver some of the most captivating experiences in the entertainment industry."

Management guided for current quarter revenue of between $635 million and $685 million, higher than analyst's estimates of $560 million. Management is looking for GAAP EPS of 92 cents to $1.12, while analysts are looking for 92 cents. 

The stock was up 4.4% for the year heading into earnings, outpacing the S&P 500's gain of 3.5% for the year.