Shares of Take-Two Interactive (NASDAQ:TTWO) stock are in the green after the video game holding company reported its first-quarter earnings for fiscal year 2025.
Take-Two’s revenue grew by 4% to $1.34 billion, just barely beating the analyst estimate for $1.33 billion. Its adjusted EPS tallied in at five cents, ahead of the estimate for two cents.
On a GAAP basis, the company reported a net loss of $262 million compared to a loss of $206 million a year ago. Furthermore, Take-Two’s net bookings grew by 1% to $1.22 billion, in line with its prior guidance.
“We are highly optimistic about our future — our core franchises remain vibrant, our teams are hard at work on the most ambitious development pipeline in our history, and we are evaluating continually new growth opportunities that have the ability to enhance our business model and financial profile,” said CEO and Chairman Strauss Zelnick.
TTWO Stock Rises on Earnings Beat
As for guidance, the company expects between $5.57 and $5.67 billion of revenue for the fiscal year ending March 31, 2025. Net bookings are expected to be between $5.55 and $5.65 billion, with the midpoint of $5.60 billion falling below the analyst estimate for $5.64 billion. Zelnick added that he foresees net bookings growing sequentially in fiscal years 2026 and 2027.
A major catalyst for Take-Two is the upcoming release of Grand Theft Auto VI, one of the company’s most successful video game franchises. The game is expected to be released in the fall of 2025. Its predecessor, Grand Theft Auto V, sold over 200 million units worldwide and is highly profitable.
Take-Two is also gearing up to release NBA 2K25 on Sept. 6, joining other 2024 releases like Game of Thrones: Legends, Star Wars: Hunters and NFL 2K Playmakers.
According to Benchmark analyst Mike Hickey, Take-Two may have other releases planned for 2024, such as a Borderlands game. Hickey adds that the company could pursue adding NFL games to its portfolio, as it could engage in negotiations with the NFL to acquire a non-exclusive license, challenging Electronic Art’s (NYSE:EA) Madden franchise.
On the date of publication, Eddie Pan 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.
On the date of publication, the responsible editor did not have (either directly or indirectly) any positions in the securities mentioned in this article.
