- Take-Two (NASDAQ:TTWO) stock is climbing sharply today
- The company reported mixed results and provided weaker-than-expected full-year revenue guidance
- Take-Two also made some cautious comments about the year ahead
The shares of video-game maker Take-Two (NASDAQ:TTWO) are rallying in early trading after the company reported mixed results for its fiscal fourth quarter of 2022.
Although Take-Two’s sales guidance for the current quarter came in significantly below analysts’ average estimate and the company made some cautious comments, TTWO stock is jumping 9%.
Mixed Results and a Guidance Miss
Take-Two reported Q4 revenue of $930 million, versus analysts’ average outlook of $884.62 million. The company also reported Q4 earnings per share of 95 cents, well above the mean estimate of 66 cents.
On the guidance front, however, the video-game maker expects net sales of $3.67 billion to $3.767 billion for fiscal 2023, versus analysts’ mean estimate of $3.96 billion.
Cautious Comments Could Weigh on TTWO Stock
Take-Two reported that it was unable to predict the impact of the reopening of economies on its business this year. CEO Strauss Zelnick said that the company’s performance “is still at a heightened level above pre-pandemic but somewhat lower than the peak of the pandemic.” He added, however, that “The new normal is just great.”
Even after surging today, TTWO stock has still tumbled 32% so far this year.
On the date of publication, Larry Ramer did not hold (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.
