Take-Two Interactive (TTWO) 2020 Q4 Earnings Results

Take-Two Interactive Software Inc. (NASDAQ:TTWO), founded in 1993, is known for producing famous game titles such as Grand Theft Auto and NBA 2K. Its product offerings include games for top hardware platforms including PlayStation, Xbox, and PCs.

The New York-based game producer enjoyed tremendous growth last year, as stuck-at-home gamers spent more time playing games. Moreover, the pandemic also fueled interest in gaming stocks among investors, driving their share price higher. TTWO stock’s value has increased about 77 percent over the past year.

Take-Two on Monday announced better-than-expected financial results for the third quarter with an upbeat outlook. The company reported earnings of $182.2 million, or $1.57 per share for the three months ended Dec. 31, above $1.43 per share in the comparable period of 2019. Analysts on average were looking for a profit of $1.12 per share.

Revenue came in at $860.9 million, down from $930.1 million in the year-ago quarter, but above the consensus forecast of $757.5 million.

Speaking on the results, CEO Strauss Zelnick said in a statement, “Due to an incredibly strong holiday season, coupled with our ability to provide consistently the highest quality entertainment experiences, especially as many individuals continue to shelter at home, Take-Two delivered operating results that significantly exceeded our expectations.”

The company expects to report a profit in the range of 88 cents per share to 98 cents per share and revenue between $702 million to $752 million for the current quarter. Comparatively, analysts were looking for earnings of 59 cents share on $584.1 million in revenue for the fourth quarter.

Take-Two shares fell more than 6 percent on Tuesday morning despite beating expectations for Q3. The apparent reason behind the latest drop seems to be the missing announcement for new titles. The company reported last year in May that it plans to roll out 93 games during the next five years. However, it hasn’t given any update related to any new title since then.