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Take-Two Interactive Software Inc. shares fell in the extended session Monday, after the videogame publisher topped earnings estimates for the quarter but provided a weaker-than-expected forecast and said it was delaying the release of some titles.
“For the year, we are reiterating our outlook, as there has been some movement in our release schedule, including two of our immersive core titles shifting to later in fiscal 2022 than contemplated by our prior guidance,” said Strauss Zelnick, Take-Two’s
TTWO,
chairman and chief executive, in a statement.
Take-Two publishes such videogame franchises as “Grand Theft Auto” and “Red Dead Redemption” under its Rockstar Games label, and “Borderlands” and “NBA2K” under its 2K label. A surge in sales last year for videogame publishers as COVID-19 stay-at-home mandates swept the globe makes for difficult comparisons for this earning season.
Take-Two forecast fiscal second-quarter earnings of 35 cents to 45 cents a share on revenue of $740 million to $790 million for the second quarter, and $1.95 to $2.20 a share on revenue of $3.14 billion to $3.24 billion for the year.
Analysts surveyed by FactSet had estimated 47 cents a share on revenue of $788.6 million for the second quarter, and $2.87 a share on revenue of $3.3 billion for the year.
Shares fell 5% after hours, following a 0.1% decline in the regular session to close at $173.21.
For the fiscal first quarter, Take-Two reported net income of $152.3 million, or $1.30 a share, compared with $88.5 million, or 77 cents a share, in the year-ago period. Revenue declined to $813.3 million from $831.3 million in the year-ago quarter.
Analysts had forecast earnings of $1.11 a share on revenue of $737.8 million.
Over the past 12 months, Take-Two shares have gained 5.6%, while the iShares Expanded Tech-Software Sector ETF
IGV,
and the tech heavy Nasdaq Composite Index
COMP,
have both grown nearly 37%, and the S&P 500 index
SPX,
has gained 34%.
