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Take-Two Interactive (TTWO) Posts Q4 Earnings, Digital Revenue Surges 8%

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Take-Two Interactive Software, Inc. (TTWO - Free Report) just released its latest quarterly financial results, posting adjusted earnings of 69 cents per share and revenues of $450.3 million.

Currently, TTWO is a Zacks Rank #3 (Hold), but that could change based on today’s results. Shares of the company have gained about 11% over the past month but dropped slightly during regular trading hours today.

The stock is currently down 5.8% to $106.70 per share in after-hours trading shortly after its earnings report was released.

Take-Two:

Beat earnings estimates. The company posted adjusted earnings of $0.69 per share, beating the Zacks Consensus Estimate of $0.64. This adjusted figure excludes eight cents from non-recurring items. Investors should note that our consensus projection has trended downward over the duration of the quarter.

On a non-adjusted basis, TTWO saw net income of $90.9 million, or $0.77 per share. This was down from $99.3 million, or $0.89 per share, in the year-ago period.

The company saw revenue figures of $450.3 million and total net bookings o $411.4 million. Our consensus estimate of $443.9 million is most likely comparable to the net bookings figure, although investors should be aware of comparison issues.

Recurrent consumer spending—including virtual currency, add-on content, and in-game purchases—increased 42% from the year-ago period and accounted for 44% of total net revenue. Digitally-delivered net revenue grew 8% to $301.4 million. Net bookings increased 5% for the full year.

“We expect fiscal 2019 to be another year of profitable growth for Take-Two, including both record Net Bookings and record net cash provided by operating activities, led by the launch of Red Dead Redemption 2 along with new annual releases from NBA 2K and WWE 2K,” said CEO Strauss Zelnick.

Take-Two Interactive expects GAAP net income for fiscal 2019 to be in the range of $180 to $211 million. The company saw GAAP net income of $173.5 million this year.

Here’s a graph that looks at Take-Two Interactive’s recent earnings performance:

Take-Two Interactive is a leading developer, publisher and marketer of interactive entertainment for consumers around the globe. The company develops and publishes products principally through its two wholly-owned labels Rockstar Games and 2K.

Check back later for our full analysis on TTWO’s earnings report!

Want more market analysis from this author? Make sure to follow @Ryan_McQueeney on Twitter!

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