NEW YORK (TheStreet) -- Shares of Take-Two Interactive Software (TTWO) were surging 8.17% to $48.46 on heavy trading volume early Thursday afternoon after the video game company reported better-than-anticipated fiscal 2017 second quarter results and gave a positive full-year outlook.
After yesterday's closing bell, New York City-based Take-Two posted adjusted earnings of 45 cents per diluted share, topping Wall Street's estimates of 30 cents per share.
Revenue rose 21% year-over-year to $420.2 million and beat analysts' projections of $402.6 million.
For the full fiscal year, the company anticipates adjusted earnings per diluted share of $2.00 to $2.25 on revenue between $1.75 billion and $1.85 billion. Analysts surveyed by FactSet are looking for adjusted earnings of $1.71 per share and revenue of $1.74 billion.
For the fiscal third quarter, Take-Two forecasts adjusted earnings per diluted share of 30 cents to 40 cents on revenue between $475 million and $525 million. The company expects to defer about $200 million in revenue from its Mafia III game, which was released on October 7.
Wall Street is modeling adjusted earnings of 89 cents per share on revenue of $695 million for the third quarter, according to FactSet.
BMO Capital Markets raised its price target on the stock to $56 from $48 and reiterated an "outperform" rating earlier today. The firm said that Take-Two found "redemption" this quarter.
"The company has seen strong performance of its titles that have released after the end of the quarter and will contribute to the stronger fiscal year," BMO added.
More than 3.77 million Take-Two shares have traded so far today vs. the 30-day average of 1.93 million.
Separately, TheStreet Ratings objectively rated this stock according to its "risk-adjusted" total return prospect over a 12-month investment horizon. Not based on the news in any given day, the rating may differ from Jim Cramer's view or that of this articles's author.
TheStreet Ratings rated this stock as a "hold" with a ratings score of C+.
The company's strengths can be seen in multiple areas, such as its revenue growth, impressive record of earnings per share growth and compelling growth in net income. However, as a counter to these strengths, we find that we feel that the company's cash flow from its operations has been weak overall.
You can view the full analysis from the report here: TTWO