Seeking Alpha

Light guidance sends Take-Two lower AH, even as current quarter beats

  • Take-Two Interactive (TTWO) -1.7% AH after reporting FQ4 earnings and revenues that easily beat expectations but issuing downside guidance for the current quarter and fiscal year.
  • In FQ4, steady sales of new videogame titles including "Grand Theft Auto" were not enough to prevent a 23% drop in revenue over the year-ago quarter when results benefited from the release of "BioShock Infinite."
  • Guidance for Q1 sees EPS loss of $0.35-$0.25 vs. analysts consensus estimate of a $0.12 loss, and revenues of $120M-$135M vs. $223M consensus.
  • FY 2015 guidance forecasts EPS of $0.80-$1.05 vs. $1.10 consensus and revenues of $1.35B-$1.45B vs. $1.38B consensus.
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Comments (6)
  • Neosephiroth86
    , contributor
    Comments (271) | Send Message
     
    18 tomorrow?
    13 May 2014, 04:50 PM Reply Like
  • baycommutez
    , contributor
    Comments (99) | Send Message
     
    Tempted to take my profit as the GTA cycle is in the wrong place... still, this company has great titles and eventually will probably be taken out quite a bit higher than it is now.
    13 May 2014, 06:56 PM Reply Like
  • Lets Talk Fundamentals
    , contributor
    Comments (6) | Send Message
     
    If the stock falls to 18, look for EA to make a bid soon given ridiculously cheap valuation adjusted for cash (~$1bn). GTA franchise value alone is worth more than existing $2bn market cap.
    13 May 2014, 08:55 PM Reply Like
  • Lets Talk Fundamentals
    , contributor
    Comments (6) | Send Message
     
    If the stock drops to 18, look for EA to make a bid given the ridiculously cheap valuation adjusted for their $1bn in cash. GTA franchise value alone is worth more than their existing market cap.
    13 May 2014, 08:56 PM Reply Like
  • manfredthree
    , contributor
    Comments (2457) | Send Message
     
    With a billion in cash , but not enough for commitment to even a 1% dividend, we think SZ projects an amazing lack of confidence in their ability to keep it together. Repurchasing shares is generally supportive of insiders with no long term support for a broader shareholder base. So, these folks are rank amateurs in terms of financial savvy and management. We were out just under 22 and will stay out until the financial side of TTWO develops the same confidence as the operations side. We would not be short, simply because we see this as a $30 stock properly managed financially rather than as a club of the highly creative.
    14 May 2014, 08:14 AM Reply Like
  • Neosephiroth86
    , contributor
    Comments (271) | Send Message
     
    Man why dividend should be so much more shareholder friendly than buyback?
    I think it's the opposite
    14 May 2014, 11:24 AM Reply Like
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