Take-Two Interactive Software Inc., the company behind video games like Grand Theft Auto, rose in extended trading after management predicted a big 2024, overshadowing lower-than-expected results for the latest quarter.
Take-Two is gearing up for the fiscal year that starts next April, driving speculation the company will release Grand Theft Auto 6. The franchise is the most important title in its portfolio. Grand Theft Auto 5 was one of the most successful media franchises of all time, selling over 185 million units.
“We continue to believe we are positioning our business for a significant inflection point in fiscal 2025,” Chief Executive Officer Strauss Zelnick said Tuesday in a statement, predicting “new record levels of operating performance.”
Shares of Take-Two rose as much as 5% to $147 in extended trading after the results were released.
The bright outlook shifted attention from fiscal first-quarter earnings that fell short of analysts’ estimates and a tepid forecast for the year just getting underway.
Earnings came to 27 cents a share, excluding some items, the New York-based game developer said Tuesday, short of the 35 cents analysts projected. Adjusted revenue in the quarter ended June 30 grew to $1.2 billion, compared with estimates of $1.21 billion.
The company launched two new games in the quarter, Lego 2k Drive and After Us. Neither was particularly popular, although After Us drew positive reviews on the gaming platform Steam.
For the current quarter, Take-Two is forecasting bookings — or adjusted revenue — of $1.4 billion to $1.45 billion. That compares with analysts’ projections of $1.46 billion. Profit will range from 95 cents to $1.05 a share, management said, while analysts predict $1.15.
For the current year, Take-Two anticipates bookings of $5.45 billion to $5.55 billion – again just shy of analysts’ projections of $5.57 billion. The company anticipates adjusted earnings of $3 to $3.25 a share, while analysts project $3.31.
