New York-based Take-Two Interactive Software, Inc. (TTWO) is a major developer and publisher of video games across various platforms, including consoles, PCs, mobile devices, and tablets. Valued at $25.8 billion by market cap, the company operates through brands like Rockstar Games, 2K, Private Division, Social Point, and Playdots, with Private Division publishing the Kerbal Space Program. Take-Two Interactive is expected to announce its fiscal 2025 Q1 earnings after the market closes on Thursday, Aug. 8.
Ahead of the event, analysts expect Take-Two Interactive to report a loss of $0.40 per share, up 1,900% from the loss of $0.02 per share reported in the year-ago quarter. The company has surpassed Wall Street’s EPS estimates in three of the past four quarters while missing on one other occasion. It posted a loss per share of $0.07 for the last reported quarter, which beat the consensus estimate by 79.4%.
Looking ahead to fiscal 2024, analysts project Take-Two Interactive to report an EPS of $0.96, up 5.5% from $0.91 in fiscal 2023. Its fiscal 2025 EPS is expected to grow 446.9% year over year to $5.25.
TTWO stock has edged up marginally over the past 52 weeks, substantially underperforming the S&P 500 Index’s ($SPX) 22.7% gains and S&P 500 Communication Sector SPDR’s (XLC) 30.4% returns over the same time frame.
Despite its underwhelming price action compared to the broader market, Take-Two Interactive benefits from its extensive network of development studios and diverse sales channels. Its global presence allows the company to leverage international talent and market insights. The company’s strategy of selling games both physically and digitally through major retailers like GameStop and Wal-Mart, as well as platforms such as Steam, Microsoft, and Sony, ensures wide market reach and multiple revenue streams.
Additionally, Take-Two’s Q4 earnings report, released on May 16, exceeded both top and bottom-line expectations. However, the video game publisher expects fiscal 2025 bookings between $5.55 billion and $5.65 billion, down from its prior forecast of just over $7 billion. Although TTWO stock initially fell by 1.4% post-earnings, it quickly recovered in subsequent trading sessions.
The consensus stance on Take-Two Interactive stock is bullish, with a “Strong Buy” rating overall. Out of the 23 analysts covering the stock, 18 recommend a “Strong Buy,” two advise a “Moderate Buy,” and three give a “Hold.”
The average target price for Take-Two Interactive is $177.75, indicating a potential upside of 18.1% from the current price levels.
On the date of publication, Kritika Sarmah did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
