Take Two Q1 Profit Improves, But Shares Down 4% On Outlook

(RTTNews) - Video game publisher Take-Two Interactive Software Inc. (TTWO) Monday reported an increase in profit for the first quarter. Shares of the company dropped 4% in the after-hours as the outlook fell short of Street View.

The net income for the quarter was $152.25 million or $1.30 per share, compared to $88.50 million or $0.77 per share last year. However, the revenue decreased 3% to $813.34 million, up from $831.31 million in 2020. Analysts polled by Thomson Reuters expected earnings of $0.89 per share for the quarter with revenues of $689.22 million.

Looking forward to the second quarter, the company expects revenue to be between $740 million to $790 million and earnings of $0.35 to $0.45 per share. Analysts currently estimate revenues of $878.25 million and an earning of $1.36 per share for the second quarter.

The company maintained its full year outlook. The revenue is expected to be $3.14 billion to $3.24 billion with earnings in the range of $1.95 to $2.20 per share. Analysts currently estimate earnings of $4.72 per share and revenues of $3.45 billion.

"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 contemplate our prior guidance. As we deliver on our expansive multi-year pipeline, we believe that we will achieve sequential growth in fiscal 2023 and establish new record levels of operating results over the next few years," said Strauss Zelnick, chairman and CEO of the company.

The shares are currently trading in the after-hours market at $167.38, down $5.83 or 3.37%. Take-Two closed at $173.21 in the regular market, down $0.21 or 0.12%.