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Take-Two Interactive Stock Tanks on Gloomy Guidance

TTWO's outlook is far from estimates

Take-Two Interactive stock was hit hard Wednesday after announcing a poor guidance for the rest of its fiscal year.

Take-Two Interactive Stock Tanks on Gloomy Guidance
Source: Shutterstock

Take-Two Interactive (NASDAQ:TTWO) says that it is expecting revenue for its fiscal fourth quarter of 2019 to range from $530 million to $580 million. This is bad news for Take-Two Interactive stock as Wall Street is looking for revenue of $606.29 million for the period.

That poor outlook for Take-Two Interactive’s fiscal fourth quarter of 2019 also comes with a less-than-stellar outlook for fiscal 2019. The company is expecting fiscal 2019 revenue to come in between $2.659 billion and $2.709 billion. That’s a real blow to Take-Two Interactive stock with analysts estimating fiscal 2019 revenue of $2.96 billion.

Take-Two Interactive stock didn’t get any help today from its earnings report for its fiscal third quarter of 2019. This includes revenue of $1.25 billion for the quarter. That’s an increase over the $480.84 million reported in the same period of the year prior. However, it was still below Wall Street’s revenue estimate of $1.48 billion for the quarter.

Take-Two Interactive’s earnings per share of $1.57 for its fiscal third quarter of 2019 also didn’t help it out. This is an increase over its revenue of 21 cents from the same time last year. However, it doesn’t do anything positive for Take-Two Interactive stock by being well below analysts’ revenue estimate of $2.75 for the period.

TTWO stock was down 13% as of Wednesday afternoon, but is up 3% year-to-date.

As of this writing, William White did not hold a position in any of the aforementioned securities.

Article printed from InvestorPlace Media, https://investorplace.com/2019/02/take-two-interactive-stock-drops-on-outlook/.

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