Take-Two Interactive Software delivered better-than-expected profitability and earnings guidance late Thursday. But it was just a warm-up for its big year of video game releases, including "Grand Theft Auto 6." TTWO stock surged on Friday.
The New York City-based company earned an adjusted 72 cents a share on net bookings of $1.37 billion in its fiscal third quarter ended Dec. 31. Analysts polled by FactSet had expected adjusted earnings of 58 cents on net bookings of $1.39 billion. On a year-over-year basis, earnings rose 1% while net bookings increased 3%.
For the current quarter, Take-Two forecast adjusted earnings of $1.37 a share on net bookings of $1.53 billion. That's based on the midpoint of its guidance. Wall Street was modeling adjusted earnings of $1.22 a share on net bookings of $1.54 billion for the fiscal fourth quarter ending March 31.
Take-Two's fiscal third-quarter results were aided by "significant outperformance" by pro sports game "NBA 2K," Chief Executive Strauss Zelnick said in a news release.
"Looking ahead, this calendar year is shaping up to be one of the strongest ever for Take-Two, as we plan to launch 'Sid Meier's Civilization 7' on February 11th, 'Mafia: The Old Country' in the summer, 'Grand Theft Auto 6' in the fall, and 'Borderlands 4.'"
TTWO Stock Gets Price-Target Hikes
On the stock market today, TTWO stock advanced 14% to close at 208.77. That's its highest level in four years.
At least six Wall Street analysts raised their price targets on TTWO stock after the earnings report.
Benchmark analyst Mike Hickey maintained his buy rating on Take-Two and upped his price target to 225 from 210.
"The company is optimistic about its financial outlook, expecting strong growth in fiscal years 2026 and 2027," Hickey said in a client note. "The company forecasts sequential increases in net bookings, driven by a robust pipeline of new game releases and ongoing strong performances from key franchises."
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