NEW YORK (TheStreet) -- Shares of video game maker Take-Two Interactive (TTWO) rose 0.76% to $27.86 in early morning trading Thursday after CEO Strauss Zelnick appeared on Jim Cramer's Mad Money show on CNBC.
Take-Two delivered earnings of 49 cents a share on Tuesday, which beat the consensus estimate of 27 cents a share by 22 cents. The company also issued earnings guidance of 25 cents to 35 cents a share for the current quarter, which smashed analysts' expectations of a loss of 2 cents a share.
Zelnick told Cramer that Take-Two is not just a drive by its hits. It's a profitable company with a diverse lineup of games that it wants to build into permanent franchises. For this reason, Take-Two does not release new versions of its games each year, with the exception of sports games. Instead, the company takes the time to craft the next installments in its series with engaging stories and interactivity.
Cramer asked Zelnick about Asian markets, and the CEO replied that the area has become a big contributor to Take-Two's growth targets after the company entered the markets just a few years ago.
Cramer said investors should keep an eye on this company as Take-Two continues to be at the forefront of interactive entertainment.
"Strauss Zelnick's putting together 10 franchises of five million units or more," Cramer said Thursday morning. "It deserves to trade on parity with Electronic Arts (EA) and Activision Blizzard (ATVI) and is too cheap. This is not just Grand Theft Auto!"