Yahoo Finance Take-Two (TTWO) to Report Q2 Earnings: What's in Store?
Take-Two Interactive TTWO is set to report second-quarter fiscal 2024 results on Nov 8.
For the quarter, the company expects net revenues between $1.26 billion and $1.31 billion. Take-Two expects a loss between $1 and 90 cents per share.
For the quarter, the Zacks Consensus Estimate for revenues is currently pegged at $1.42 billion, suggesting a decline of 5.47% from the figure reported in the year-ago quarter.
The consensus mark for fiscal second-quarter earnings has remained stable at $1.03 per share in the past 30 days, indicating a decline of 17.6% from the year-ago quarter’s reported figure.
Take-Two’s earnings beat the Zacks Consensus Estimate in two of the last four quarters and missed twice. TTWO delivered a trailing four-quarter earnings surprise of 4.81%, on average.
Let’s see how things have shaped up for this announcement:
Take-Two Interactive Software, Inc. Price and EPS Surprise
Take-Two Interactive Software, Inc. price-eps-surprise | Take-Two Interactive Software, Inc. Quote
Factors to Consider
Take-Two’s fiscal second-quarter revenues are expected to have benefited from the solid demand for its popular franchises, including Grand Theft Auto, Red Dead Redemption, NBA 2K and WWE 2K23.
The launch of the latest NBA game, NBA 2K24, is expected to have aided user growth in the to-be-reported quarter.
Continued growth in recurrent consumer spending, which is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and in-game advertising, is expected to have driven top-line growth.
In first-quarter fiscal 2024, recurrent consumer spending surged 29% year over year and accounted for 83% of total net revenues. Our model suggests 8.3% year-over-year growth for the fiscal second quarter.
Our model estimates for Console Publishing revenues are pegged at $502 million, indicating a decline of 52% on a year-over-year basis.
Moreover, the acquisition of Zynga has been highly accretive to Take-Two’s prospects as it has expanded its mobile gaming portfolio.
Our model suggests mobile revenues to surge 10.8% year over year to $650.6 million.
However, rising operating expenses have been a concern for the company. In the fiscal first quarter, operating expenses surged 25.4% year over year to $883.5 million. The company is continuously investing in product development and advertisement to win market share, which is expected to have kept margins under pressure in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. That is not the case here.
Take-Two has an Earnings ESP of -1.46% and carries a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Stocks to Consider
Here are some stocks worth considering, as our model shows that these have the right combination of elements to beat on earnings this season.
Arcellx ACLX has an Earnings ESP of +19.40% and carries a Zacks Rank #2 at present. You can see the complete list of today’s Zacks #1 Rank stocks here.
Arcellx is set to announce third-quarter 2023 results on Nov 13. Shares of ACLX have gained 44.1% year to date.
Upstart UPST has an Earnings ESP of +9.09% and sports a Zacks Rank #1 at present.
Upstart is set to announce third-quarter 2023 results on Nov 7. Shares of UPST have rallied 129.3% year to date.
Clarivate CLVT has an Earnings ESP of +5.56% and a Zacks Rank #3 at present.
Clarivate is set to announce third-quarter 2023 results on Nov 7. Shares of CLVT have declined 17.6% year to date.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report
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