Take-Two Interactive Software, Inc. shares gained more than 10% during pre-market trading on Wednesday following strong second quarter financial results. Revenue increased 20.3% to $576.98 million – beating consensus estimates by $60.9 million – with a net loss of three cents per share. Recurring consumers accounted for about 48% of total revenue, rising 66% during the quarter, and digital deliveries grew 31% to $302.9 million.
Management believes that third quarter net revenue will come in higher than initially thought – between $440 million and $490 million – with a net loss of $29 million to $40 million. During the full year, the company reduced its GAAP net income estimates to $63 million to $91 million due to higher internal royalties stemming from “Grand Theft Auto,” but net bookings are expected to be between $1.93 billion and $2.03 billion, with $300 million in cash from operations. (See also: Take-Two’s Holiday-Qtr Sales View Tops Estimates, Shares Rise.)
Take-Two stock is up more than 120% this year, but strong second quarter earnings could support a further move higher. …read more
Read more here: Take-Two Stock Poised for Fresh Highs After Strong Earnings