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Take-Two Shoots Higher After Earnings - Game Not Over

|About: Take-Two Interactive Software, Inc. (TTWO)

Take-Two Interactive Software (TTWO) traded 12% higher on Friday morning, after posting earnings that beat analyst estimates.

The company reported earnings per share of $0.13 and total revenue of $288 million, beating Wall Street expectations of $0.07 and $260 million. It reported “net bookings” of $288 million, compared to estimates of $260 million. As with other video game producers, the company accounts for net bookings which accounts for both online and in-store sales.

For the next quarter, Take-Two expects earnings of $0.43-0.53 per share and net bookings of $500-550 million. Wall Street however estimates net bookings of $586 million. Nonetheless, Oppenheimer and Wedbush increased their price targets for the stock.

In analyzing the TTWO market cycles, we can see that it may have hit its cycle low early, now beginning the rising phase of the next cycle. Benefiting from strong momentum and having started a rising phase, we believe TTWO may be set to make new highs. Our intermediate term projection is $140, based on its Fibonacci extensions and cyclical formations.

Take-Two (TTWO) Stock Chart with Weekly Bars

For more from Slim, or to learn about cycle analysis, check out the askSlim Market Week show every Friday on our YouTube channel.