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Take-Two Interactive Software, Inc. (TTWO)

  • Tue, May 19, 12:20 PM
    • Take-Two Interactive Software (NASDAQ:TTWO) is soaring, up 15.5%, after an earnings report where it provided strong guidance for the coming quarter and counted the successes of titles like Grand Theft Auto V and NBA 2K15.
    • Sterne Agee upgraded shares from Neutral to Buy today, setting a raised price target of $32. Shares are trading currently at $27.94.
    • Other analysts noted what looked like soft full-year guidance seemed in line with expectations considering the lack of a full Rockstar Games release. Wedbush's Michael Pachter said facing an "underwhelming" release slate, the company's guidance (EPS of $0.75-$1.00 and non-GAAP revenues of $1.3B-$1.4B) fit his expectations, and Wedbush raised its target to $26 from $24.
    • Credit Suisse's Stephen Ju pointed to increased digital sales (up 66%) as a positive mix shift, but that the shares have a balanced risk-reward profile. The firm raised its target to $32 from $28.
    • Previously: Take-Two up 7.3% after earnings; details pipeline, Asia plans (May. 18 2015)
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  • Tue, May 19, 9:15 AM
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  • Mon, May 18, 5:44 PM
    • Take-Two Interactive (NASDAQ:TTWO) is up 7.3% after hours following its fiscal Q4 and year-end results, where some revenue deferrals made for a heavy GAAP loss but boosted strong guidance for Q1. The company's forecast for the coming year was also to the downside of expectations.
    • Elaborating on forecasting on its earnings call, CEO Strauss Zelnick noted that despite a slow pipeline from Rockstar Games, they're hard at work on a number of upcoming titles: "Rockstar today is different from the Rockstar of a few years ago," he said noting that the release of Grand Theft Auto Online has changed its world as "a living, breathing entity" that generates revenue and profits on an ongoing basis.
    • The company increased its buyback authorization to 10M shares; on the call, management noted that buybacks aren't anticipated in its expectations for a fiscal 2016 EPS of $0.75-$1.00.
    • Regarding Asia Pacific, Zelnick said it's a "very significant area of focus for us," pointing to NBA 2K's monthly revenues/profits. "Now we feel a little more confident about financial risk because we have a good deal of experience in the region ... I think in the Chinese market, it's likely that we -- and our competitors -- will have local partners. The Chinese government wants us to work with strong local partners, and Tencent and others are proving to be exceedingly strong partners for us."
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  • Mon, May 18, 5:37 PM
  • Mon, May 18, 4:28 PM
    • Take-Two Interactive (NASDAQ:TTWO) spent the last 10 minutes sinking into the close to finish -2%, just before an earnings release for its fiscal Q4 showing a miss on revenues despite 83% growth.
    • GAAP results showed a net loss of $2.99/share, reflecting some net revenue and cost of goods deferrals. On a non-GAAP basis, EPS was $0.49 vs. an expected $0.28 and against last year's $0.21.
    • Revenue from digitally delivered content was up 66% Y/Y, to $202.5M. Biggest contributors to revenue for Q4: Grand Theft Auto V (freshly released for PC), Grand Theft Auto Online, Evolve, NBA 2K15 and Borderlands: The Handsome Collection.
    • It's increased its buyback authorization up to an aggregate 10M shares.
    • The firm's guiding high for its fiscal Q1, for non-GAAP revenues of $325M-$350M vs. $207M expected, and for EPS of $0.25-$0.35 vs. an expected -$0.01. For fiscal 2016, the company expects non-GAAP net revenue of $1.3B-$1.4B, lower than expected $1.82B, and EPS of $0.75-$1.00 vs. an expected $1.87.
    • Conference call at 4:30 p.m. ET.
    • Press Release
  • Mon, May 18, 4:14 PM
    • Take-Two Interactive Software (NASDAQ:TTWO): FQ4 EPS of $0.49 beats by $0.22.
    • Revenue of $427.73M (+83.4% Y/Y) misses by $31.21M.
    • Press Release
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  • Sun, May 17, 5:35 PM
  • Fri, May 15, 4:52 PM
    • Video game spending was up slightly Y/Y in April, gaining 3% to $595.7M, paced by a 13% increase in physical software sales, according to industry trackers NPD Group.
    • That's apart from mixed results in hardware sales -- which were up 12% in unit terms, but declined 4% on a dollar basis to $183.9M, after a round of console price cuts.
    • Physical software rose to $256.7M. This month, violent games took the spotlight, with "Fatality"-friendly Mortal Kombat X (NYSE:TWX) the new game topping the chart. It was followed by Grand Theft Auto V (NASDAQ:TTWO) and Battlefield: Hardline (NASDAQ:EA). MLB 15: The Show (NYSE:SNE), another new game, came in at the fourth spot, just ahead of Minecraft.
    • GTAV was one of three games that Take Two had in the top 10, along with NBA 2K15 and Borderlands: The Handsome Collection.
    • At long last, the Xbox One (NASDAQ:MSFT) took over the top console spot from PlayStation 4 (SNE) despite no big game news to push it; Xbox One sales were up 63% Y/Y.
    • Nintendo (OTCPK:NTDOY) says that the Wii U is up 15% for the first four months of 2015 vs. the year-ago period, and 3DS sales up 65% Y/Y for that same period.
  • Fri, May 15, 4:07 PM
    • Senate Bill 9 has been passed by both legislative chambers in Nevada, clearing the way for skills-based casino floor games.
    • The development also opens a door for videogame sellers to create or license casino versions of their popular titles.
    • The casino industry has its eyes on attracting millennials after seeing the group show tepid demand for classic table games and slot machines.
    • New Jersey and Mississippi have also set the stage for casino floor innovation with similar legislation.
    • Previously: Paging Steve Nash to the Borgata (Feb. 13)
    • Related ETFs: BJK
  • Fri, Apr. 17, 5:39 PM
    • A new version of popular series Battlefield wasn't enough to boost video game sales in March, as software sales slipped 3% Y/Y to $395.4M. But software was positively solid compared to game hardware sales that slipped 21% Y/Y to $311.1M, according to NPD Group.
    • In new retail games, Battlefield: Hardline (NASDAQ:EA), a cops-and-robbers version of the war-game series, led sales charts followed by another new entry, action role-player Bloodborne (NYSE:SNE) which was strong despite being a PS4 exclusive.
    • The top five was rounded out by Grand Theft Auto V (NASDAQ:TTWO), Mario Party 10 (OTCPK:NTDOY), and Call of Duty: Advanced Warfare (NASDAQ:ATVI).
    • Physical software sales showed sharp declines for previous-generation consoles, which points to the health of the new generation (PS4, Xbox One, Wii U), whose software sales increased 58% Y/Y.
    • In hardware, Sony says PS4 again topped the charts, but everyone's doing well in the new generation: “This is the 17th month of sales for the Xbox One and PS4, whose combined cumulative hardware sales are over 50% higher than the combined 17-month cumulative sales totals for the Xbox 360 and PS3,” said NPD's Liam Callahan.
    • In a market down more than 1% today, GameStop (NYSE:GME) did worse, down 3.1%.
    • And in other EA news, at the ongoing "Star Wars Celebration" event going on in Anaheim, Calif., today's news included the reveal trailer for Star Wars: Battlefront wowing fans. Launching Nov. 17, the game showcases high-definition visuals but takes a somewhat risky move of dropping single-player missions entirely for cooperative and multiplayer.
  • Fri, Mar. 13, 5:15 PM
    • NPD estimates U.S. physical retail game sales rose 7% Y/Y in February to $338.9M, up from January's 5% growth and better than expected. Hardware sales rose 10% to $378.2M, as next-gen console demand remains healthy. Superdata Research estimates digital game revenue rose just 2% to $995M, thanks to weak mobile and social game sales.
    • Nintendo (OTCPK:NTDOY) had a good month: The recently-refreshed 3DS XL handheld was February's top-selling console - Ninetendo says 394K 3DS units were sold - and The Legend of Zelda: Majora's Mask 3D (launched on Feb. 13) topped NPD's game rankings.
    • Take-Two (NASDAQ:TTWO) also did well: Evolve (launched on Feb. 10) was #2 on NPD's list, GTA V came in at #5 (down from January's #3) ahead of its March 24 PC launch, and NBA 2K15 was at #6 (down from #5). Take-Two recently said it was "very pleased" with Evolve's launch.
    • Activision's (NASDAQ:ATVI) Call of Duty: Advanced Warfare fell two spots to #4, while Destiny (#9 last month) fell out of the top-10. Electronic Arts' (NASDAQ:EA) Madden NFL 15 and FIFA 15 also dropped out.
    • Piper observes Take-Two and Activision's NPD sales were respectively up 72% and 16% Y/Y in February, and that EA's were down 32% over the first two months of 2015. It maintains Overweight ratings on all 3 firms.
    • Take-Two rose 3.9% in regular trading thanks to the numbers. GameStop (NYSE:GME) also got a lift, rising 3.5%. Activision rose 0.9% and EA rose 0.4%.
  • Thu, Mar. 12, 2:11 PM
    • Take-Two (TTWO +1%) COO Karl Slatoff, speaking at a recent Piper conference: "When we first picked up Evolve... our instincts told us we had something really special ...  I think our instincts have proven out right. We're very pleased ... We're very happy where things are going, particularly on the digital side. Digital has been very strong for us, not only with full game downloads but also the attach rate for our season pass has been very strong."
    • Following a delay, Evolve launched on Feb. 10 to fairly positive reviews - Metacritic gives the first-person shooter a score of 77/100. Nonetheless, its downloadable content purchase options have triggered a backlash from some gamers.
    • Cowen's Doug Creutz recently estimated February U.S. Evolve sales totaled 300K, and that first-year sell-through would top out at a moderate 1.5M.
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  • Mon, Feb. 9, 7:21 AM
    • A state senate bill floating around in Nevada proposes to allow more games of skill than chance on the floors of casinos in the state.
    • A passage of the bill could set off a flood of new casino games based off of popular videogames.
    • Videogames at casinos are seen as a way to draw in more of the 75M millennials who as a group have shied away from slot machines and games of blind luck.
    • The potential also exists to introduce gambling through apps for games in Nevada and create cash tournaments online.
    • Related stocks: LVS ,CZR, BYD, MGM, WYNN, SGMS, ATVI, TTWO, EA.
  • Wed, Feb. 4, 2:23 PM
    • "While Take-Two (TTWO -2.1%) has some of the strongest video game franchises, the stock suffers from lack of visibility in the release schedule and choppy earnings," writes BMO, reacting to the company's FQ3 beat. Nonetheless, the firm thinks Take-Two can now deliver sustained profitability, thanks to the GTA franchise's growth, recurring revenue streams, and the popularity of franchises such as Borderlands, BioShock, and Red Dead.
    • Likewise, Macquarie praises Take-Two's execution, but says it's "somewhat blind" about its FY16 (ends March '16) performance due to a lack of game release visibility. The only titles Take-Two has set release schedules for beyond March are Sid Meier's Starships (spring) and Battleborn (somewhere in FY16).
    • Macquarie thinks Take-Two will launch a new Red Dead title in FY16, but admits it's just speculating based on prior release timings. Wedbush doubts a Red Dead game will launch in FY16, given a lack of teasers/announcements to date.
    • Though selling off today, shares remain well above where they traded in October.
    • FQ3 results, guidance/details
  • Tue, Feb. 3, 5:37 PM
    • Top gainers, as of 5:15 p.m.: ENTR +7.8%. MXL +5.6%. CRMD +5.0%. DWTI +4.7%. TTWO +4.6%.
    • Top losers, as of 5:15 p.m.: MYGN -15.4%. PLNR -8.5%. BC -8.4%. CMG -6.9%. WTW -5.8%.
  • Tue, Feb. 3, 4:30 PM
    • Take-Two's (NASDAQ:TTWO) digitally-delivered content sales rose 64% Y/Y in FQ2 to $217.2M (23% of total revenue). Recurrent revenue streams such as virtual currency, downloadable add-on content, and online games (heavily linked to Grand Theft Auto V) were up 23%, and made up 36% of digital revenue.
    • For seasonally weak FQ4, Take-Two expects revenue of $410M-$460M and EPS of $0.15-$0.25 vs. a consensus of $437.4M and $0.25. FY15 guidance has been hiked due to the FQ3 beat.
    • Not surprisingly, the titles making the biggest FQ3 revenue contributions were "Grand Theft Auto V and Grand Theft Auto Online, NBA® 2K15, WWE® 2K15, Borderlands®: The Pre-Sequel, and Sid Meiers Civilization®: Beyond Earth" Evolve launches on Feb. 10, and Sid Meier's Starships in the spring. GTA V arrives on PCs on March 24.
    • Operating expenses rose 36% Y/Y to $187.5M. Sales/marketing spend totaled $96.9M, G&A $53.6M, and R&D $31.2M.
    • Shares have made new 52-week highs in AH trading.
    • FQ3 results, PR
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Company Description
Take-Two Interactive Software Inc is a developer, marketer and publisher of interactive entertainment for consumers around the globe. The Company develops and publishes products through its two wholly-owned labels Rockstar Games and 2K.