We use cookies to understand how you use our site and to improve your experience. This includes personalizing content and advertising. To learn more, click here. By continuing to use our site, you accept our use of cookies, revised Privacy Policy and Terms of Service.
You are being directed to ZacksTrade, a division of LBMZ Securities and licensed broker-dealer. ZacksTrade and Zacks.com are separate companies. The web link between the two companies is not a solicitation or offer to invest in a particular security or type of security. ZacksTrade does not endorse or adopt any particular investment strategy, any analyst opinion/rating/report or any approach to evaluating individual securities.
If you wish to go to ZacksTrade, click OK. If you do not, click Cancel.
Higher Recurrent Spending to Aid Take Two (TTWO) Q2 Earnings
Read MoreHide Full Article
Take Two Interactive Software (TTWO - Free Report) is scheduled to report second-quarter fiscal 2019 results on Nov 7.
The company beat the Zack Consensus Estimate in the trailing four quarters, delivering average positive surprise of 26.95%.
In the last reported quarter, Take Two’s earnings of 62 cents per share increased 11.3% from the year-ago quarter. The company's net revenues declined 7.2% from the year-ago quarter to almost $388 million.
For second-quarter fiscal 2019, Take Two expects net bookings to be in the band of $500-$550 million. GAAP net revenues are expected in the range of $480-$530 million. NBA 2K, Grand Theft Auto Online and Grand Theft Auto V are expected to be major contributors.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $548.6 million, while that for earnings stands at 91 cents per share.
Let’s see how things are shaping up prior to this announcement.
Higher Recurrent Spending a Key Catalyst
Take Two is increasingly benefiting from higher contribution of recurrent consumer spending to its total revenues. The company witnessed higher spending on its popular game offerings like Grand Theft Auto Online and NBA 2K18.
Notably, in first-quarter fiscal 2019, recurrent consumer spending accounted for 62% of revenues compared with 41% in the year-ago quarter.
Additionally, Take Two’s net bookings from recurrent consumer spending also increased from 63% of total net bookings in the first-quarter fiscal 2019 as compared to 59% in first quarter fiscal 2018. Grand Theft Auto Online and Grand Theft Auto V, NBA 2K18, Dragon City and Monster Legends, and WWE 2K18 were the major contributors.
Take-Two Interactive Software, Inc. Price and EPS Surprise
Release of NBA 2K19 in second-quarter fiscal 2019 is expected to drive recurrent consumer spending and net bookings on the back of NBA 2K franchise success.
Notably, NBA 2K18, the previous title of the franchise, was the highest-selling sports title in Take Two’s history. The game sold more than 10 million units in the last reported quarter.
Additionally, NBA 2K Online remains the leading PC online sports game in China with more than 37 million registered users. Banking on this success, Take Two launched the beta version of NBA 2K Online 2 in China in fiscal second-quarter 2019 in collaboration with Visual Concepts and Tencent (TCEHY - Free Report) .
Moreover, the inaugural season of Take Two’s first e-sports league, NBA 2K League, held from Aug17-25, garnered strong viewership on Amazon’s Twitch – its streaming partner for the league.
However, Take Two is expected to face significant competition from Activision and Electronic Arts’ (EA - Free Report) .
EA recently released NBA LIVE 19, which will be a direct competitor to Take Two’s NBA franchise games. Moreover, EA’s award-winning portfolio of games is expected to pose significant threat.
Nevertheless, we believe Take Two’s NBA franchise success and other popular game offerings will drive sales and engagement levels. Further, the company’s unique agreement with HB Studios to become the sole provider of the PGA TOUR golf simulation game bodes well.
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
Image: Bigstock
Higher Recurrent Spending to Aid Take Two (TTWO) Q2 Earnings
Take Two Interactive Software (TTWO - Free Report) is scheduled to report second-quarter fiscal 2019 results on Nov 7.
The company beat the Zack Consensus Estimate in the trailing four quarters, delivering average positive surprise of 26.95%.
In the last reported quarter, Take Two’s earnings of 62 cents per share increased 11.3% from the year-ago quarter. The company's net revenues declined 7.2% from the year-ago quarter to almost $388 million.
For second-quarter fiscal 2019, Take Two expects net bookings to be in the band of $500-$550 million. GAAP net revenues are expected in the range of $480-$530 million. NBA 2K, Grand Theft Auto Online and Grand Theft Auto V are expected to be major contributors.
The Zacks Consensus Estimate for third-quarter revenues is currently pegged at $548.6 million, while that for earnings stands at 91 cents per share.
Let’s see how things are shaping up prior to this announcement.
Higher Recurrent Spending a Key Catalyst
Take Two is increasingly benefiting from higher contribution of recurrent consumer spending to its total revenues. The company witnessed higher spending on its popular game offerings like Grand Theft Auto Online and NBA 2K18.
Notably, in first-quarter fiscal 2019, recurrent consumer spending accounted for 62% of revenues compared with 41% in the year-ago quarter.
Additionally, Take Two’s net bookings from recurrent consumer spending also increased from 63% of total net bookings in the first-quarter fiscal 2019 as compared to 59% in first quarter fiscal 2018. Grand Theft Auto Online and Grand Theft Auto V, NBA 2K18, Dragon City and Monster Legends, and WWE 2K18 were the major contributors.
Take-Two Interactive Software, Inc. Price and EPS Surprise
Take-Two Interactive Software, Inc. Price and EPS Surprise | Take-Two Interactive Software, Inc. Quote
NBA Franchise to Boost Top Line
Release of NBA 2K19 in second-quarter fiscal 2019 is expected to drive recurrent consumer spending and net bookings on the back of NBA 2K franchise success.
Notably, NBA 2K18, the previous title of the franchise, was the highest-selling sports title in Take Two’s history. The game sold more than 10 million units in the last reported quarter.
Additionally, NBA 2K Online remains the leading PC online sports game in China with more than 37 million registered users. Banking on this success, Take Two launched the beta version of NBA 2K Online 2 in China in fiscal second-quarter 2019 in collaboration with Visual Concepts and Tencent (TCEHY - Free Report) .
Moreover, the inaugural season of Take Two’s first e-sports league, NBA 2K League, held from Aug17-25, garnered strong viewership on Amazon’s Twitch – its streaming partner for the league.
However, Take Two is expected to face significant competition from Activision and Electronic Arts’ (EA - Free Report) .
EA recently released NBA LIVE 19, which will be a direct competitor to Take Two’s NBA franchise games. Moreover, EA’s award-winning portfolio of games is expected to pose significant threat.
Nevertheless, we believe Take Two’s NBA franchise success and other popular game offerings will drive sales and engagement levels. Further, the company’s unique agreement with HB Studios to become the sole provider of the PGA TOUR golf simulation game bodes well.
Take Two currently carries a Zacks Rank #3 (Hold). You can see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
Today's Stocks from Zacks' Hottest Strategies
It's hard to believe, even for us at Zacks. But while the market gained +21.9% in 2017, our top stock-picking screens have returned +115.0%, +109.3%, +104.9%, +98.6%, and +67.1%.
And this outperformance has not just been a recent phenomenon. Over the years it has been remarkably consistent. From 2000 - 2017, the composite yearly average gain for these strategies has beaten the market more than 19X over. Maybe even more remarkable is the fact that we're willing to share their latest stocks with you without cost or obligation.
See Them Free>>