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Take-Two (TTWO) to Report Q3 Earnings: What's in Store?

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Take-Two Interactive (TTWO - Free Report) is set to report its third-quarter fiscal 2023 results on Feb 6.

For the quarter, it expects net revenues between $1.43 billion and $1.48 billion. Take-Two expects a loss between 95 and 85 cents per share.

For the quarter, the Zacks Consensus Estimate for revenues is currently pegged at $1.44 billion, suggesting a rise of 66.7% from the figure reported in the year-ago quarter.

The consensus mark for fiscal third-quarter earnings has been unchanged in the past 30 days at 88 cents, indicating a decline of 39.73% from the year-ago quarter’s reported figure.

Take-Two’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, missing twice. TTWO delivered a trailing four-quarter earnings surprise of 1.98% on average.

Factors to Consider

Take-Two’s fiscal third-quarter revenues are expected to have benefited from solid demand for its popular franchises including Grand Theft Auto (GTA), Red Dead Redemption, NBA 2K and WWE 2K22.
 

 

The Zynga acquisition has established Take-Two as one of the largest publishers of mobile games. The deal unified Take Two’s top-class portfolio of PC and console games and Zynga’s leading mobile franchises, thereby benefiting top-line growth.

However, rising operating costs are a matter of concern for the company. In the fiscal second quarter, operating expenses surged 144.4% year over year to $932.1 million. The company is continuously investing in product development and advertising to win market share, which is expected to have kept margins under pressure in the to-be-reported quarter.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is just the case here.

TTWO currently has an Earnings ESP of +3.54% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Other Stocks to Consider

Here are a few other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:

BJ’s Wholesale Club (BJ - Free Report) has an Earnings ESP of +9.09% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.

BJ’s Wholesale shares have gained 22% in the past year. BJ is set to report its fourth-quarter 2022 results on Mar 9.

Warner Bros. Discovery (WBD - Free Report) currently has an Earnings ESP of +46.88% and a Zacks Rank #2.

Warner Bros. shares have declined 44.9% in the past year. WBD is set to report its fourth-quarter 2022 results on Feb 23.

Roku (ROKU - Free Report) has an Earnings ESP of +1.97% and a Zacks Rank of 3, at present.

Roku shares have declined 54.9% in the past year. ROKU is set to report its fourth-quarter 2022 results on Feb 15.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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