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