Take-Two Interactive Down 2.13% To $137.15 After Earnings Miss

Wednesday, August 9, 2023 - Take-Two Interactive (TTWO) reported downside earnings and upside revenues.

Take-Two Interactive's earnings came in at an EPS of $0.27 per share, 27% lower than estimates for an EPS of $0.37 per share. The firm's earnings are down 62% since reporting $0.71 per share in the same period a year ago. Remember, earnings reported were on an adjusted basis, so they may not be comparable to prior reports and/or analyst estimates.

Revenues were upbeat at $1.2 billion. That is an increase of 19.84% in revenues from the year-ago report and is 0.17% higher than consensus estimates set at $1.2 billion. Again, keep in mind that the revenues reported were on an adjusted basis, so they may not be directly comparable to estimates and prior periods.

The stock is down 2.13% to $137.15 after the report.

The firm's higher revenue growth to earnings signals that the firm has not been able to reduce costs and has seen its profit margin decrease.

The average recommendation from Wall Street analysts was a Strong Buy which may get revised based on this new data.

Trading in the five days leading up to the report earned Take-Two Interactive a Bearish Sentiment Rank from InvestorsObserver.

Take-Two Interactive has performed a little above average during the past few months. Before the report, Take-Two Interactive received a Long-Term Technical Rank by InvestorsObserver of 73, putting it in the top half of stocks. The firm was recently trading at a 52-week high of $153.84 on July 19, 2023 and set a 52-week low on November 8, 2022 at $90.

Founded in 1993 Take-Two consists of two wholly owned labels Rockstar Games and 2K. The firm is one of the world largest independent video game publishers on consoles PCs smartphones and tablets. Take-Two franchise portfolio is headlined by Grand Theft Auto 345 million units sold and contains other well-known titles such as NBA 2K Civilization Borderlands Bioshock and Xcom.