Take-Two Swings To Q2 Profit, Lifts Outlook - Update

(RTTNews) - Take-Two Interactive Software Inc. (TTWO), Thursday reported a swing to second-quarter profit from a loss last year as revenues surged reflecting "series record-breaking launch" of 'NBA 2K16' and continued demand for the blockbuster game 'Grand Theft Auto V.' Both earnings and revenues for the quarter trumped Wall Street estimates.

Moving ahead, the video game publisher raised its full-year financial outlook anticipating a strong demand for its games during holiday season.

New York-based Take-Two reported second-quarter profit of $54.7 million or $0.55 per share, compared to a loss of $41.4 million or $0.51 per share last year.

Excluding items, adjusted earnings for the quarter were $32.7 million or $0.30 per share compared to net loss of $35.4 million or $0.44 per share a year ago. On an average, 16 analysts polled by Thomson Reuters expected earnings of $0.15 per share for the quarter. Analysts' estimates typically exclude one-time items.

Revenues for the second quarter rose to $347.0 million from $126.3 million last year. Adjusted revenues, which exclude effects of change in deferred revenues, rose to $364.9 million from $135.4 million. Analysts had a consensus revenue estimate of $318.3 million for the quarter.

CEO Strauss Zelnick said, "Our second quarter results were anchored by the series record-breaking launch of NBA 2K16, along with ongoing demand for Grand Theft Auto V and strong growth in recurrent consumer spending."

Looking forward to the third quarter, Take-Two expects adjusted earnings of $0.40 to $0.50 per share on adjusted revenues of $400 million to $450 million. Analysts currently expect earnings of $0.45 per share on revenues of $452.66 million.

For the full year 2016, Take-Two now expects adjusted earnings of $1.00 to $1.15 per share on adjusted revenues of $ 1.325 billion to $1.425 billion. Analysts currently expect earnings of $1.01 per share on revenues of $1.41 billion for 2016.

Earlier, the company expected adjusted earnings of $0.75 to $1.00 per share and adjusted revenues of $1.3 billion to $1.4 billion.

"We are raising our fiscal 2016 financial outlook to reflect our outperformance in the second quarter and positive forecast for the balance of the year," Zelnick said.

TTWO closed Thursday's trading at $33.05, down $0.98 or 2.88%, on the Nasdaq. The stock further gained $0.25 or 0.76% in the after-hours trading.