Take-Two Interactive TTWO is bracing itself to unveil its third-quarter fiscal 2024 results.
For the upcoming quarter, Take-Two anticipates GAAP net revenues in the range of $1.29 billion to $1.34 billion, with a projected loss per share ranging from 73 cents to 63 cents.
The Zacks Consensus Estimate for revenues is currently set at $1.34 billion, marking a 3.23% decline from the year-ago quarter.
Projections for fiscal third-quarter earnings have dipped 1.4% to 72 cents per share over the past 30 days, signaling a 22.58% decrease from the reported figure in the year-ago quarter.
In the last four quarters, Take-Two beat the Zacks Consensus Estimate thrice and missed once, achieving an average trailing four-quarter earnings surprise of 12.14%.
Now, let’s delve into what to expect:
Take-Two’s Performance So Far
Take-Two’s fiscal third-quarter is anticipated to have been fueled by sustained demand for its renowned franchises, such as Grand Theft Auto, Red Dead Redemption, NBA 2K, and WWE 2K.
The recent launch of NBA 2K24 and a new game called Rollerdrome are expected to have contributed to user growth in the forthcoming quarter.
Furthermore, the acquisition of Zynga has substantially broadened Take-Two’s mobile gaming portfolio. The release of Top Troops, a game blending mobile strategy, RPG, and merge mechanics, from Zynga is likely to have bolstered mobile revenues.
However, a sluggishness in recurrent consumer spending growth, higher operating expenses, and a downturn in video game spending might have impacted Take-Two’s top-line growth and margins, reflecting the industry’s overall weakness.
In the previous quarter, recurrent consumer spending decreased by 9% year over year, accounting for 77% of total net revenues.
Moreover, with consumer spending on video games declining by 5% and 7% in October and November respectively, and remaining relatively stagnant in December, the industry’s challenges are palpable.
What the Numbers Say
According to the Zacks model, a positive Earnings ESP combined with a Zacks Rank #1 (Strong Buy), 2 (Buy), or 3 (Hold) enhances the likelihood of an earnings beat, but this doesn’t apply in Take-Two’s case.
Currently, the company has an Earnings ESP of -3.86% and holds a Zacks Rank #3.
Promising Stocks in Similar Space
Several companies are worth considering based on their potential to surpass earnings estimates in their upcoming quarterly results:
BlackLine BL, set to release fourth-quarter 2023 results on Feb 13, has an Earnings ESP of +2.62% and a Zacks Rank #1, with a consensus estimate pointing to a 57.1% jump in earnings from the prior-year quarter.
Another contender, Twilio TWLO, is slated to announce fourth-quarter 2023 results on Feb 14. With an Earnings ESP of +31.37% and a Zacks Rank #2, the company is expected to outperform its year-ago quarterly earnings.
Bill Holdings BILL, scheduled to announce second-quarter fiscal 2024 results alongside Take-Two, currently holds an Earnings ESP of +6.17% and a Zacks Rank #3. The consensus estimate suggests a 2.4% decline in earnings from the year-ago quarter.
For investors keen on staying informed about upcoming earnings announcements, the Zacks Earnings Calendar can offer valuable insights.
A Final Thought
As we await Take-Two’s third-quarter fiscal 2024 results, investors should weigh these factors as they navigate the dynamic and competitive landscape of the gaming industry.
For the original article, head to Zacks.com
The views and opinions expressed herein are the views and opinions of the author and do not necessarily reflect those of Nasdaq, Inc.
