Take-Two Offers Upbeat Guidance as Earnings Beat in Q4

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Investing.com – Take-Two (NASDAQ:TTWO) reported on Wednesday fourth-quarter guidance and results that topped expectations on both the top and bottom lines as better-than-expected bookings bolstered growth.

Take-Two announced earnings per share of $1.07 on revenue of $729.4 million. Analysts polled by Investing.com anticipated EPS of $0.91 on revenue of $581.63 million. That compared with an EPS of $0.78 on revenue of $488.41 million in the same period a year before. Take-Two had reported EPS of $1.63 on revenue of $888.18 million in the previous quarter.

Net bookings, a key operating metric that measures the net amount of products and services sold digitally or sold-in physically, grew 49% to $729.4 million for the quarter year-on-year.

Catalog accounted for $432.1 million of bookings, led by Grand Theft Auto, Red Dead Redemption, Sid Meier’s Civilization, and Social Point’s mobile offerings.

Digitally-delivered bookings grew 60% to $672.1 million and accounted for 92% of overall bookings.

Take-Two shares are up 20.08% from the beginning of the year , still down 1.49% from its 52 week high of $149.24 set on May 20. They are outperforming the Nasdaq 100 which is up 7.76% year to date.

Looking ahead, the company said it expected to deliver first-quarter earnings between $0.90 and $1.00 a share on revenue within a range of $775-to-$825 million. Analysts were expecting earnings per share of $0.51 and revenue of $486.11 million.

Net bookings were expected to range from $800-to-$850 million in the upcoming quarter

“Looking ahead, Take-Two has the strongest development pipeline in its history, including sequels from our biggest franchises as well as exciting new IP. While fiscal 2021 will be a light new release year, we expect to deliver strong results, reflecting the diversity and strength of our catalog and live service offerings,” said Strauss Zelnick, Chairman and CEO of Take-Two.

“We have an array of titles that we will begin to launch in fiscal 2022, which we expect to drive sequential growth that year,” Zelnick added.

Stay up-to-date on all of the upcoming earnings reports by visiting Investing.com’s earnings calendar

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