Take-Two Climbs 5% on Improved Q4 Performance

Shares of Take-Two Interactive Software, Inc. (NASDAQ: TTWO) rose 5.2% in Monday’s extended trading session after it reported results for the fourth quarter of Fiscal Year 2022. The company engages in the development, publishing, and marketing of interactive software games.

It reported quarterly earnings of $0.95 per share, down 49.5% year-over-year. Also, Take-Two’s net revenues rose 11% to $930 million.

Quarterly net bookings stood at $845.8 million at the end of the quarter, up 8% from the same quarter last year. The upside was primarily driven by a 9.4% year-over-year increase in console net bookings, which comprised 71% of the total net bookings during the quarter.

For Fiscal Year 2022, Take-Two has reported net revenues of $3.5 billion, up 4% year-over-year. Also, it delivered earnings of $3.58 per share, compared with $5.09 per share in Fiscal Year 2021.

The Chairman and CEO of Take-Two, Strauss Zelnick, said, “As we execute on our organic growth initiatives, while unlocking new opportunities presented by our pending transaction with Zynga, we believe that we can broaden our portfolio and capitalize further on new platforms, business models, emerging markets, and distribution channels.”

“As we deliver on these growth drivers, we believe that Take-Two remains incredibly well-positioned to increase its scale and prominence in the industry, expand its margins, and deliver long-term value for our shareholders,” Zelnick added.

Outlook

For Fiscal Year 2023, Take-Two forecasts net booking between $3.75 billion and $3.85 billion, while it expects net revenue and net income in the range of $3.67 billion to $3.77 billion and $223 million to $252 million, respectively. Earnings are projected between $1.90 and $2.15 per share.

Stock Rating

Consensus among analysts is a Strong Buy based on 10 Buys and one Hold. Take-Two’s average price target stands at $199.09 and implies upside potential of 80.8% to current levels.

Website Traffic

With the help of TipRanks’ Website Traffic Tool, one can predict a company’s performance well ahead of its results. According to the tool, in the first quarter, the TTWO website’s total projected worldwide visits rose 45.4% year-over-year, which is visible in the year-over-year growth witnessed in the revenues for the reported quarter.

Conclusion

Take-Two’s growing margins and rising demand for bookings from mobile are likely to support its long-term growth. Investors interested in the stock may want to take a closer look at its fundamentals.

Learn more about the Website Traffic tool in this video by Youtube sensation Tom Nash.

Read full Disclaimer & Disclosure