Take-Two Interactive Shows Strong Performance Amid Industry Challenges
Take-Two Interactive Software (TTWO) has seen its stock shares rise by 17.8% year to date (YTD). This growth surpasses the Zacks Consumer Discretionary sector’s increase of 16.3%, but trails behind the Zacks Toys-Games-Hobbies industry, which has returned 20.2% during the same period.
TTWO has outperformed competitors such as Nintendo (NTDOY), Playtika (PLTK), and UbiSoft Entertainment (UBSFY) in 2023. Specifically, NTDOY has gained 15.3%, while PLTK and UBSFY have seen declines of 5.7% and 48.4%, respectively.
Strong Franchises Drive Growth for Take-Two
The success of flagship franchises plays a vital role in TTWO’s positive performance. Grand Theft Auto V continues to exceed expectations, having sold over 205 million units. Similarly, Red Dead Redemption 2 remains popular, maintaining a top 10 spot six years after its launch. New title NBA 2K25 has also achieved impressive sales with 4.5 million units sold, reflecting TTWO’s capacity for innovation and audience engagement.
Additionally, mobile gaming contributes significantly to the company’s growth. Popular Zynga games like Match Factory and Toon Blast have enhanced revenue, while effective monetization strategies in hyper-casual gaming are key factors driving this upward trend.
Going forward, TTWO anticipates the release of several highly awaited titles in fiscal year 2026, such as Grand Theft Auto VI, Borderlands 4, and Mafia: The Old Country. Upcoming launches of Sid Meier’s Civilization VII and WWE 2K25 are also expected to reinforce TTWO’s leading position in the market.
However, competition remains fierce with giants like Electronic Arts and Activision Blizzard, along with emerging contenders. Macroeconomic factors and fluctuations in consumer spending, particularly in the mobile gaming sector and recurrent revenue streams, present additional challenges.
A significant decline of 30.1% in advertising revenues during the second quarter of fiscal 2025 highlights the challenges within this segment. This situation emphasizes the need for TTWO to enhance its advertising strategies in order to maintain growth momentum.
Earnings Estimates Show Year-Over-Year Decline for TTWO
Looking ahead to the third quarter of fiscal 2025, Take-Two anticipates GAAP net revenues between $1.36 billion and $1.41 billion, with net bookings expected to range from $1.35 billion to $1.4 billion.
For the entire fiscal year 2025, TTWO projects GAAP net revenues between $5.57 billion and $5.67 billion, and net bookings estimated between $5.55 billion and $5.65 billion.
The Zacks Consensus Estimate for the third quarter of fiscal 2025 suggests revenues of approximately $1.39 billion, which reflects a year-over-year growth of 3.69%. Earnings per share are projected at 58 cents, down 2 cents from the past month, representing an 18.31% decline compared to last year.
For fiscal 2025, the Zacks Consensus Estimate for revenues stands at $5.61 billion, showing a growth of 5.2% year-over-year. The estimated earnings per share for 2025 is $2.51, reflecting minimal change from the previous estimate.
TTWO has exceeded the Zacks Consensus Estimate in three out of the last four quarters, with an overall average surprise of 199.65%.
Take-Two Interactive Software, Inc. Price and Consensus
Take-Two Interactive Software, Inc. price-consensus-chart | Take-Two Interactive Software, Inc. Quote
Find the latest EPS estimates and surprises on Zacks Earnings Calendar.
Should Investors Hold on to TTWO Stock?
TTWO’s strong franchises, growth in mobile gaming, and promising content pipeline provide a solid foundation, but the company also faces tough competition and economic uncertainties.
Currently, TTWO holds a Zacks Rank #3 (Hold), indicating that it may be wise for investors to wait for a more favorable moment to buy the stock. You can discover the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report
Nintendo Co. (NTDOY) : Free Stock Analysis Report
UbiSoft Entertainment Inc. (UBSFY) : Free Stock Analysis Report
Playtika Holding Corp. (PLTK) : Free Stock Analysis Report
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