Benzinga - by Zacks, Benzinga Contributor.
Take-Two Interactive (NASDAQ: TTWO) is set to report fourth-quarter fiscal 2024 results on May 16.
For the fourth quarter of fiscal 2024, Take-Two expects GAAP net revenues between $1.32 billion and $1.37 billion. The company expects a loss per share between $1 and 90 cents.
The Zacks Consensus Estimate for revenues is currently pegged at $1.3 billion, suggesting a decline of 6.56% from the figure reported in the year-ago quarter.
The consensus mark for fiscal fourth-quarter loss per share has narrowed from 13 cents to 7 cents in the past 30 days, indicating a decline of 91.76% from the year-ago quarter's reported figure.
Take-Two's earnings beat the Zacks Consensus Estimate twice in the last four quarters and missed the other two occasions, delivering an average surprise of 10.38%.
Let's see how things have shaped up for this announcement.
Take-Two Interactive Software, Inc. Price and EPS Surprise
Take-Two Interactive Software, Inc. price-eps-surprise | Take-Two Interactive Software, Inc. Quote
Factors to Consider Take-Two's fiscal fourth-quarter performance is expected to have reflected steady demand for its popular franchises, including Grand Theft Auto, Red Dead Redemption, NBA 2K and WWE 2K.
Moreover, the acquisition of Zynga has been highly accretive to the company's prospects as it has expanded its mobile gaming portfolio. Zynga's Top Troops, a game that blends mobile strategy, RPG and merge mechanics, is expected to have aided mobile revenues in the to-be-reported quarter.
The growing popularity of Grand Theft Auto Online and Grand Theft Auto V, the Red Dead Redemption series and Zynga's in-app purchases are likely to have aided TTWO's top-line growth.
In the fiscal fourth quarter, the company released the Deluxe Edition and Forty Years of WrestleMania Edition of WWE 2K24, the newest installment of the video game franchise. Take Two's publishing label, Private Division, announced the availability of Penny's Big Breakaway for the Nintendo Switch family of systems, PS 5, Xbox Series XS and PC via Steam.
However, dullness in recurrent consumer spending growth, which is generated from ongoing consumer engagement and includes virtual currency, add-on content, in-game purchases and advertising, is likely to have reflected in the company's top-line growth.
In third-quarter fiscal 2024, recurrent consumer spending decreased 7% year over year and accounted for 76% of total net revenues.
Moreover, continued softness in mobile advertising and NBA 2K24 is expected to have adversely impacted the top line.
The company has been witnessing increased operating expenses for game development and marketing. The rising expenses are likely 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.
Take-Two has an Earnings ESP of +14.29% and carries a Zacks Rank #2 at present.
Other Stocks to Consider Here are some other companies worth considering from the same space, as our model shows that these also have the right combination of elements to beat on earnings this season.
NVIDIA (NASDAQ: NVDA) has an Earnings ESP of +2.50% and a Zacks Rank #2 at present.
Shares of NVIDIA have surged 79.2% year to date. NVDA is scheduled to release first-quarter fiscal 2025 results on May 22.
Agilent Technologies (NYSE: A) has an Earnings ESP of +0.72% and a Zacks Rank #3 at present.
The stock has risen 4.4% year to date. A is set to report second-quarter fiscal 2024 results on May 29.
Applied Materials (NASDAQ: AMAT) has an Earnings ESP of +0.31% and a Zacks Rank #3 at present.
Shares of Applied Materials have jumped 27.3% year to date. AMAT is set to report second-quarter fiscal 2024 results on May 16.
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