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Take-Two halted following blowout FQ3; FQ4 guidance light

  • Take-Two (TTWO) attributes its big FQ3 beat to strong holiday season sales of Grand Theft Auto V, NBA 2K14, and WWE 2K14, as well as solid digital sales growth (led by Grand Theft Auto Online).
  • For seasonally weak FQ4 (revenue is typically a fraction of FQ3 levels), Take-Two expects revenue of $170M-$200M and EPS of $0.00-$0.10, less than a consensus of $219.2M and $0.13. But Take-Two's FQ3 beat will likely overshadow its guidance.
  • $276.8M has been spent since Oct. 1 to buy back 16.2M shares (12M of those shares were purchased from Carl Icahn), providing a boost to EPS. Opex rose 16% Y/Y in FQ3 to $137.8M.
  • Take-Two's next major game launches are BioShock Infinite: Burial at Sea Episode 2 (ETA unknown) and Evolve (expected this fall).
  • CC at 4:30PM ET. FQ4 results, PR.
Comments (2)
  • Julian Acosta
    , contributor
    Comments (123) | Send Message
     
    Hmm, what I find interesting is no mention of GTAV downloadable content. I would be shocked if there is none being released this year. However, I think this points to a PC/Next-Gen release being even more likely. I'm sure this will be touched upon in the CC.
    3 Feb, 04:37 PM Reply Like
  • inside man 55
    , contributor
    Comments (673) | Send Message
     
    Good point Julian, maybe they don't want to give competitors an advantage, still expecting Q2 for next gen. I have to see the financials but based on the buy back, shareholder's equity and book value, I may have to increase my price target again.
    3 Feb, 05:45 PM Reply Like
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