Take-Two Interactive TTWO is set to report its third-quarter fiscal 2023 results on Feb 6.
For the quarter, it expects net revenues between $1.43 billion and $1.48 billion. Take-Two expects a loss between 95 and 85 cents per share.
For the quarter, the Zacks Consensus Estimate for revenues is currently pegged at $1.44 billion, suggesting a rise of 66.7% from the figure reported in the year-ago quarter.
The consensus mark for fiscal third-quarter earnings has been unchanged in the past 30 days at 88 cents, indicating a decline of 39.73% from the year-ago quarter’s reported figure.
Take-Two’s earnings beat the Zacks Consensus Estimate in two of the last four quarters, missing twice. TTWO delivered a trailing four-quarter earnings surprise of 1.98% on average.
Factors to Consider
Take-Two’s fiscal third-quarter revenues are expected to have benefited from solid demand for its popular franchises including Grand Theft Auto (GTA), Red Dead Redemption, NBA 2K and WWE 2K22.
Take-Two Interactive Software, Inc. Price and EPS Surprise
Take-Two Interactive Software, Inc. price-eps-surprise | Take-Two Interactive Software, Inc. Quote
The Zynga acquisition has established Take-Two as one of the largest publishers of mobile games. The deal unified Take Two’s top-class portfolio of PC and console games and Zynga’s leading mobile franchises, thereby benefiting top-line growth.
However, rising operating costs are a matter of concern for the company. In the fiscal second quarter, operating expenses surged 144.4% year over year to $932.1 million. The company is continuously investing in product development and advertising to win market share, which is expected to have kept margins under pressure in the to-be-reported quarter.
What Our Model Says
Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. This is just the case here.
TTWO currently has an Earnings ESP of +3.54% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.
Other Stocks to Consider
Here are a few other companies worth considering, as our model shows that these too have the right combination of elements to beat on earnings in their upcoming releases:
BJ’s Wholesale Club BJ has an Earnings ESP of +9.09% and a Zacks Rank #1. You can see the complete list of today’s Zacks #1 Rank stocks here.
BJ’s Wholesale shares have gained 22% in the past year. BJ is set to report its fourth-quarter 2022 results on Mar 9.
Warner Bros. Discovery WBD currently has an Earnings ESP of +46.88% and a Zacks Rank #2.
Warner Bros. shares have declined 44.9% in the past year. WBD is set to report its fourth-quarter 2022 results on Feb 23.
Roku ROKU has an Earnings ESP of +1.97% and a Zacks Rank of 3, at present.
Roku shares have declined 54.9% in the past year. ROKU is set to report its fourth-quarter 2022 results on Feb 15.
Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.
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