:max_bytes(150000):strip_icc()/GettyImages-2192884531-9fcce92f417d48168b3bf33e76056be1.jpg?w=696&resize=696,0&ssl=1 "Take-Two Shares Surge Following Smaller Loss and Confirmation of ‘GTA VI’ Release")
:max_bytes(150000):strip_icc()/GettyImages-2192884531-9fcce92f417d48168b3bf33e76056be1.jpg?w=1200&resize=1200,0&ssl=1&description=Take-Two+Shares+Surge+Following+Smaller+Loss+and+Confirmation+of+%E2%80%98GTA+VI%E2%80%99+Release){kind=link}
Photo credit: www.investopedia.com
Take-Two Interactive Reports Smaller Loss, Shares Rise
Key Takeaways
Take-Two Interactive Software saw its shares rise by 10% on Friday following the company’s announcement of a smaller-than-expected net loss for the third quarter. Moreover, the firm confirmed its plans to launch the highly-anticipated “Grand Theft Auto VI” in the fall of 2025. Analysts at JPMorgan expressed optimism regarding Take-Two’s performance amidst ongoing challenges within the gaming industry.
For the third quarter, Take-Two reported revenues of $1.36 billion, which remained stable compared to the previous year, albeit slightly below the consensus estimate of $1.4 billion from Visible Alpha. Additionally, the company recorded a net loss of $125.2 million, or $0.71 per share. This figure, while larger than last year’s loss, fell under analyst expectations.
JPMorgan Analysts ‘Encouraged’ By Results
In their analysis of the earnings results, JPMorgan analysts highlighted the positive aspects of Take-Two’s performance, stating, “We’re encouraged by another quarter of solid performance across TTWO’s key titles, which stands out in an otherwise challenged industry backdrop.”
In response to the results, Take-Two adjusted its fiscal year loss projections downward. The company now anticipates a net loss between $729 million and $788 million, an improvement from prior estimates that ranged from $775 million to $839 million, and generally below the consensus expectation of $776.9 million.
During the earnings call, Chief Financial Officer Lainie Goldstein emphasized that 2025 is expected to be a “milestone year” for the company thanks to the planned game releases. The reaffirmation of the “Grand Theft Auto VI” launch date was noted positively by JPMorgan, as there had been concerns among investors about potential delays due to the absence of recent game trailers.
As a result of these developments, shares of Take-Two opened at their highest level in four years, showcasing market confidence in the company’s future potential and ongoing projects.
Source
www.investopedia.com