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Take-Two (TTWO) to Report Q4 Earnings: What's in Store?

Take-Two Interactive TTWO is set to report fourth-quarter fiscal 2023 results on May 17.

For the quarter, it expects net revenues between $1.34 billion and $1.39 billion. Take-Two expects a loss between $1.27 and $1.17 per share.

For the quarter, the Zacks Consensus Estimate for revenues is currently pegged at $1.34 billion, suggesting a rise of 58.42% 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 70 cents, indicating a decline of 39.66% from the year-ago quarter’s reported figure.

Take-Two Interactive Software, Inc. Price and EPS Surprise


Take-Two Interactive Software, Inc. Price and EPS Surprise
Take-Two Interactive Software, Inc. Price and EPS Surprise

Take-Two Interactive Software, Inc. price-eps-surprise | Take-Two Interactive Software, Inc. Quote


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 -3.90% on average.

Factors to Consider

Take-Two’s fiscal fourth-quarter revenues are expected to have benefited from the solid demand for its popular franchises, including Grand Theft Auto (GTA), Red Dead Redemption, NBA 2K and WWE 2K23. The strong adoption of NBA 2K23 and Grand Theft Auto V is expected to have continued in the fiscal fourth quarter.

During the to-be-reported quarter, the company released Kerbal Space Program 2 (early access) and WWE 2K23 under its franchise that is likely to have bolstered its game pipeline and driven the top line.

The acquisition of Zynga is highly accretive to Take-Two’s business. It enables Take Two to achieve powerful synergies featuring new title releases, top-class portfolio of PC and console games and the execution of cost-saving initiatives, thereby contributing to the top line.

Take-Two’s acquisition of Popcore is expected to have strengthened its leadership among hyper-casual publishers with respect to downloads and revenues in the to-be-reported quarter. The combination offers a unique balance of hyper-casual experiences that also prioritize long-term player retention rates.

However, rising operating costs are a concern for the company. In the fiscal third quarter, operating expenses surged 123% year over year to $889 million. The company is continuously investing in product development and advertisement 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. That’s not the case here.

TTWO currently has an Earnings ESP of -6.30% and a Zacks Rank #3. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are some companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

BJ’s Wholesale Club BJ has an Earnings ESP of +4.19% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

BJ’s Wholesale shares have gained 7% year to date. BJ is set to report its first-quarter 2023 results on May 23.

Bowlero BOWL currently has an Earnings ESP of +9.02% and a Zacks Rank #3.

Bowlero’s shares have declined 3.2% year to date. BOWL is set to report its third-quarter fiscal 2023 results on May 17.

V.F. Corporation VFC has an Earnings ESP of +3.70% and a Zacks Rank of 3, at present.

V.F. Corporation’s shares have declined 22.9% year to date. VFC is set to report its fourth-quarter 2023 fiscal results on May 23.

Stay on top of upcoming earnings announcements with the Zacks Earnings Calendar.

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V.F. Corporation (VFC) : Free Stock Analysis Report

Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report

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