Take-Two Interactive (TTWO) Once Again Crushed Expectation for Q4

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 (see most valuable gaming companies).

The New York-based video game holding company recently announced strong financial results for the fourth quarter. Take-Two reported earnings of $218.8 million, or $1.88 per share for the three months ended March 31, significantly higher than $122.7 million, or $1.07 per share in the comparable period of 2020. Analysts on average were looking for earnings of 97 cents per share.

Revenue for the quarter climbed 10 percent on a year-over-year basis to $839.4 million, beating the consensus forecast of $746 million. Net bookings in the quarter rose 8 percent to $784.5 million, mainly driven by strong bookings for NBA 2K21, NBA 2K20, Grand Theft Auto V, and Grand Theft Auto Online, among others.

Speaking on the results, CEO Strauss Zelnick said in a statement, “Our strong fourth quarter results concluded an exceptional year for our organization. We delivered record operating results, including Net Bookings of approximately $3.6 billion and Adjusted Unrestricted Operating Cash Flow of $920 million. Throughout the year, we enhanced our organization for the long term by broadening our portfolio of offerings, capitalizing on diverse business models, enhancing our infrastructure, and most importantly, investing in our creative talent.”

Take-Two also issued its financial outlook for the first quarter. It expects to report earnings in the range of $1 per share to $1.10 per share for the current quarter, well above the consensus forecast of 64 cents per share. Moreover, the company projected revenue in the range of $730 million to $780 million for Q1, versus analysts’ average estimate of $593 million.