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).