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Take-Two Interactive shares surge on strong outlook and game releases

Investing.comFeb 6, 2025 9:54 PM

Investing.com-- Take-Two Interactive Software (NASDAQ:TTWO) shares jumped 6.5% after the video game publisher reiterated its full-year guidance and outlined plans for major game releases, despite missing analyst estimates for the third quarter.

The company reported Q3 net bookings of $1.37 billion, within its guidance range but slightly below the consensus estimate of $1.39 billion. Adjusted earnings per share came in at -$0.71, significantly lower than the $0.59 analysts expected.

However, Take-Two maintained its fiscal year 2025 net bookings forecast of $5.55 billion to $5.65 billion, citing strong performance from NBA 2K25 and upcoming high-profile game launches.

The company plans to release Sid Meier's Civilization VII, Mafia: The Old Country, Grand Theft Auto VI, and Borderlands 4 in the coming year.

"This calendar year is shaping up to be one of the strongest ever for Take-Two," said CEO Strauss Zelnick. He expressed confidence in achieving record net bookings levels in fiscal years 2026 and 2027.

For Q3, net bookings from recurrent consumer spending grew 9% YoY, accounting for 79% of total net bookings. The largest contributors included NBA 2K25, Grand Theft Auto Online, and mobile titles like Toon Blast and Match Factory.

Take-Two expects Q4 revenue between $1.519 billion and $1.619 billion, with EPS ranging from -$0.20 to $0.13. The company's full-year EPS guidance of -$4.50 to -$4.17 falls below analyst expectations of $2.47.

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