Take-Two Interactive Software shares gained ground in extended trading Tuesday as anticipation of the next Grand Theft Auto game seemed to outweigh quarterly results that fell short of expectations and full-year guidance that got worse.
The video game publisher, which owns the studios behind NBA2K and Red Dead Redemption franchises, posted revenue of $1.28 billion and a loss of $1.22 per share in its fiscal first quarter. Wall Street had projected $1.35 billion in revenue and a loss of $1.22 per share.
For the current quarter, Take-Two projected a loss of $1 to $0.90 per share on revenue of $1.26 billion to $1.31 billion. Analysts expect a loss of $0.70 on revenue of $1.4 billion.
For the full year, the company expects a loss of $3.20 to $2.95 per share, wider than its prior range of $3.05 to $2.80 per share.
However, investors may have their eye on 2025, when the latest iteration of the smash-hit Grand Theft Auto is tentatively expected to be released.
“Our teams are making excellent progress on our strategic focus areas, including the advancement of our eagerly anticipated development pipeline and capitalizing on our revenue-driven opportunities and synergies, all while maintaining a deep focus on efficiency,” CEO Strauss Zelnick said, possibly referencing GTA VI.
“We remain confident that we are positioning our business for a significant inflection point in fiscal 2025, which we believe will include new record levels of operating performance,” he added.
Shares of Take-Two climbed 2.5% to $143.60 in after-hours trading.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
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