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For the quarter, it expects net revenues between $1.21 billion and $1.26 billion. Take-Two expects a loss between $1.05 and 95 cents per share.
For the quarter, the Zacks Consensus Estimate for revenues is currently pegged at $1.20 billion, suggesting a rise of 20.03% from the figure reported in the year-ago quarter.
The consensus mark for fiscal first-quarter earnings has declined by a penny to 36 cents in the past 30 days, indicating a decline of 40.98% from the year-ago quarter’s reported figure.
Take-Two Interactive Software, Inc. Price and EPS Surprise
Take-Two’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed twice. TTWO delivered a trailing four-quarter negative earnings surprise of 1.37% on average.
Let’s see how things have shaped up for this announcement:
Factors to Consider
Take-Two’s fiscal first-quarter revenues are expected to have benefited from the solid demand for its popular franchises, including Grand Theft Auto (GTA), Red Dead Redemption, NBA 2K and WWE 2K23.
Continued growth in recurrent consumer spending (which is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and in-game advertising) is expected to have driven top-line growth.
In fourth-quarter fiscal 2023, recurrent consumer spending surged 94% year over year and accounted for 79% of total net revenues. Our model suggests 35.3% year-over-year growth for the fiscal first quarter.
Our model estimates for Console Publishing revenues are pegged at $546.1 million, indicating a decline of 10.1% on a year-over-year basis.
Moreover, the acquisition of Zynga has been highly accretive to Take-Two’s prospects as it has expanded its mobile gaming portfolio.
Our model suggests mobile revenues to surge 57.8% year over year to $583.2 million.
However, rising operating expenses have been a concern for the company. In the fiscal fourth quarter, operating expenses surged 130% year over year to $925.6 million. The company is continuously investing in product development and advertisement to win market share, which is expected to have kept margins under pressure in the to-be-reported quarter.
Our model estimate for operating expenses suggests a jump of 23.2% to $867.7 million.
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.
Take-Two has an Earnings ESP of +35.40% and carries a Zacks Rank #3 at present. 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:
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Take-Two (TTWO) to Report Q1 Earnings: What's in Store?
Take-Two Interactive (TTWO - Free Report) is set to report first-quarter fiscal 2024 results on Aug 8.
For the quarter, it expects net revenues between $1.21 billion and $1.26 billion. Take-Two expects a loss between $1.05 and 95 cents per share.
For the quarter, the Zacks Consensus Estimate for revenues is currently pegged at $1.20 billion, suggesting a rise of 20.03% from the figure reported in the year-ago quarter.
The consensus mark for fiscal first-quarter earnings has declined by a penny to 36 cents in the past 30 days, indicating a decline of 40.98% from the year-ago quarter’s reported figure.
Take-Two Interactive Software, Inc. Price and EPS Surprise
Take-Two Interactive Software, Inc. price-eps-surprise | Take-Two Interactive Software, Inc. Quote
Take-Two’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed twice. TTWO delivered a trailing four-quarter negative earnings surprise of 1.37% on average.
Let’s see how things have shaped up for this announcement:
Factors to Consider
Take-Two’s fiscal first-quarter revenues are expected to have benefited from the solid demand for its popular franchises, including Grand Theft Auto (GTA), Red Dead Redemption, NBA 2K and WWE 2K23.
Continued growth in recurrent consumer spending (which is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and in-game advertising) is expected to have driven top-line growth.
In fourth-quarter fiscal 2023, recurrent consumer spending surged 94% year over year and accounted for 79% of total net revenues. Our model suggests 35.3% year-over-year growth for the fiscal first quarter.
Our model estimates for Console Publishing revenues are pegged at $546.1 million, indicating a decline of 10.1% on a year-over-year basis.
Moreover, the acquisition of Zynga has been highly accretive to Take-Two’s prospects as it has expanded its mobile gaming portfolio.
Our model suggests mobile revenues to surge 57.8% year over year to $583.2 million.
However, rising operating expenses have been a concern for the company. In the fiscal fourth quarter, operating expenses surged 130% year over year to $925.6 million. The company is continuously investing in product development and advertisement to win market share, which is expected to have kept margins under pressure in the to-be-reported quarter.
Our model estimate for operating expenses suggests a jump of 23.2% to $867.7 million.
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.
Take-Two has an Earnings ESP of +35.40% and carries a Zacks Rank #3 at present. 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:
Townsquare (TSQ - Free Report) has an Earnings ESP of +4.17% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
Townsquare shares have gained 53.8% year to date. TSQ is set to report its second-quarter 2023 results on Aug 9.
On Holding (ONON - Free Report) has an Earnings ESP of +5.00% and a Zacks Rank #1.
On Holding shares have surged 106.8% year to date. ONON is set to report its second-quarter 2023 results on Aug 15.
SciPlay has an Earnings ESP of +10.53% and a Zacks Rank of 2, at present.
SciPlay shares have gained 22.6% year to date. SCPL is set to report its second-quarter 2023 results on Aug 8.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.