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Take Two's (TTWO) Q3 Earnings Beat Estimates, Revenues Up Y/Y
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Take Two Interactive Software (TTWO - Free Report) reported third-quarter fiscal 2022 earnings of $1.24 per share, down 21% year over year.
Net revenues increased 4.9% year over year to $903.3 million. Net Bookings increased 6.4% to $866.1 million.
The Zacks Consensus Estimate for earnings and revenues was pegged at $1.13 per share and $884 million, respectively.
NBA 2K22 and NBA 2K21; Grand Theft Auto Online and Grand Theft Auto V; Grand Theft Auto: The Trilogy - The Definitive Edition, Red Dead Redemption 2 and Red Dead Online; Grand Theft Auto: San Andreas, Borderlands 3; and Two Dots were the biggest contributors to the company’s third-quarter fiscal 2022 top line.
Digital revenues (88.1% of revenues) increased 7.1% year over year to $759.7 million. Physical retail and other segment revenues (11.9% of revenues) declined 8.7% year over year to $107.5 million.
Recurrent consumer spending (virtual currency, add-on content and in-game purchases, including the allocated value of virtual currency and add-on content incorporated in special editions of certain games) was relatively flat and contributed 61% to total revenues.
TakeTwo Interactive Software, Inc. Price, Consensus and EPS Surprise
Region-wise, revenues from the United States (59.2% of revenues) increased 1.2% year over year to $534.9 million. International revenues (40.8% of revenues) increased 10.8% year over year to $368.4 million.
On the basis of platforms, revenues from console (73.7% of revenues) increased 1.4% year over year to $665.5 million. Revenues from PC and other (14.8% of revenues) dropped 1.2% year over year to $133.9 million. Revenues from mobile (11.5% of revenues) surged 49.9% year over year to $103.8 million.
Operating Details
Take Two’s gross profit increased 7.4% year over year to $552.9 million. Reported gross margin of 61.2% expanded 140 basis points on a year-over-year basis.
Operating expenses increased 17.8% year over year to $398.8 million.
Operating income came in at $154.1 million, falling 12.5% year over year. Operating margin was 17.1% compared with the year-ago quarter’s 20.5%.
Balance Sheet
As of Dec 31, 2021, Take Two had $2.73 billion in cash, cash equivalents and short-term investments compared with $3.05 billion as of Sep 30, 2021.
Guidance
For fourth-quarter fiscal 2022, Take Two expects GAAP net revenues between $835 million and $885 million. The company expects earnings between 46 and 56 cents per share.
Net bookings are projected between $808 million and $858 million.
For fiscal 2022, net bookings are expected between $3.37 billion and $3.42 billion. GAAP net revenues are likely to be $3.41-$3.46 billion. Take Two expects earnings between $3.10 per share and $3.20.
Zacks Rank & Other Stocks to Consider
Take-Two Interactive currently carries a Zacks Rank #3 (Hold).
Cedar Fun is all set to announce fourth-quarter 2021 results on Feb 16.
FUN is up 34.5% in the past year against the Zacks Leisure and Recreation Services industry’s decline of 7% and the Consumer Discretionary sector’s fall of 22.3%.
Gildan Activewear is set to announce fourth-quarter 2021 results on Feb 23.
GIL is up 50.5% in the past year against the Zacks Textile – Apparel industry’s decline of 5% and the Consumer Discretionary sector’s fall of 22.3%.
Fox is all set to announce second-quarter fiscal 2022 results on Feb 9.
FOXA is up 24.2% in the past year against the Zacks Broadcast Radio and Television industry’s decline of 20.7% and the Consumer Discretionary sector’s fall of 22.2% in the past year.
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Take Two's (TTWO) Q3 Earnings Beat Estimates, Revenues Up Y/Y
Take Two Interactive Software (TTWO - Free Report) reported third-quarter fiscal 2022 earnings of $1.24 per share, down 21% year over year.
Net revenues increased 4.9% year over year to $903.3 million. Net Bookings increased 6.4% to $866.1 million.
The Zacks Consensus Estimate for earnings and revenues was pegged at $1.13 per share and $884 million, respectively.
NBA 2K22 and NBA 2K21; Grand Theft Auto Online and Grand Theft Auto V; Grand Theft Auto: The Trilogy - The Definitive Edition, Red Dead Redemption 2 and Red Dead Online; Grand Theft Auto: San Andreas, Borderlands 3; and Two Dots were the biggest contributors to the company’s third-quarter fiscal 2022 top line.
Digital revenues (88.1% of revenues) increased 7.1% year over year to $759.7 million. Physical retail and other segment revenues (11.9% of revenues) declined 8.7% year over year to $107.5 million.
Recurrent consumer spending (virtual currency, add-on content and in-game purchases, including the allocated value of virtual currency and add-on content incorporated in special editions of certain games) was relatively flat and contributed 61% to total revenues.
TakeTwo Interactive Software, Inc. Price, Consensus and EPS Surprise
TakeTwo Interactive Software, Inc. price-consensus-eps-surprise-chart | TakeTwo Interactive Software, Inc. Quote
Top-Line Details
Region-wise, revenues from the United States (59.2% of revenues) increased 1.2% year over year to $534.9 million. International revenues (40.8% of revenues) increased 10.8% year over year to $368.4 million.
On the basis of platforms, revenues from console (73.7% of revenues) increased 1.4% year over year to $665.5 million. Revenues from PC and other (14.8% of revenues) dropped 1.2% year over year to $133.9 million. Revenues from mobile (11.5% of revenues) surged 49.9% year over year to $103.8 million.
Operating Details
Take Two’s gross profit increased 7.4% year over year to $552.9 million. Reported gross margin of 61.2% expanded 140 basis points on a year-over-year basis.
Operating expenses increased 17.8% year over year to $398.8 million.
Operating income came in at $154.1 million, falling 12.5% year over year. Operating margin was 17.1% compared with the year-ago quarter’s 20.5%.
Balance Sheet
As of Dec 31, 2021, Take Two had $2.73 billion in cash, cash equivalents and short-term investments compared with $3.05 billion as of Sep 30, 2021.
Guidance
For fourth-quarter fiscal 2022, Take Two expects GAAP net revenues between $835 million and $885 million. The company expects earnings between 46 and 56 cents per share.
Net bookings are projected between $808 million and $858 million.
For fiscal 2022, net bookings are expected between $3.37 billion and $3.42 billion. GAAP net revenues are likely to be $3.41-$3.46 billion. Take Two expects earnings between $3.10 per share and $3.20.
Zacks Rank & Other Stocks to Consider
Take-Two Interactive currently carries a Zacks Rank #3 (Hold).
Some better-ranked stock to consider from the Zacks Consumer Discretionary sector is Cedar Fun (FUN - Free Report) , carrying a Zacks Rank #1 (Strong Buy), and Gildan Activewear (GIL - Free Report) and Fox (FOXA - Free Report) , both carrying a Zacks Rank #2 (Buy) at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Cedar Fun is all set to announce fourth-quarter 2021 results on Feb 16.
FUN is up 34.5% in the past year against the Zacks Leisure and Recreation Services industry’s decline of 7% and the Consumer Discretionary sector’s fall of 22.3%.
Gildan Activewear is set to announce fourth-quarter 2021 results on Feb 23.
GIL is up 50.5% in the past year against the Zacks Textile – Apparel industry’s decline of 5% and the Consumer Discretionary sector’s fall of 22.3%.
Fox is all set to announce second-quarter fiscal 2022 results on Feb 9.
FOXA is up 24.2% in the past year against the Zacks Broadcast Radio and Television industry’s decline of 20.7% and the Consumer Discretionary sector’s fall of 22.2% in the past year.