- Take-Two’s net bookings forecast for 2025 is between $5.55 billion and $5.65 billion, falling short of the estimated $6.92 billion.
- The adjusted EPS (Earnings Per Share) is expected to range from $2.34 to $2.59, considerably below the estimated $5.86.
- The projection for adjusted Ebitda is from $746 million to $800 million, lesser than the estimate of $1.23 billion.
- In the first quarter, Take-Two predicts net bookings to be between $1.20 billion and $1.25 billion, just below the estimated $1.26 billion.
- The company expects the adjusted loss per share to be anywhere between 5.0c and EPS 5.0c, against an estimate of EPS 45c.
- Adjusted Ebitda for the first quarter is forecasted to be between $49 million and $70 million, compared to the $129.1 million estimate.
- Q4 results show net bookings at $1.35 billion, reducing by 2.9% year on year, but surpassing an estimate of $1.31 billion.
- Digital online net bookings were $1.29 billion, down by 4.2% y/y and slightly higher than the estimated $1.24 billion.
- Physical Retail and Other net bookings increased by 27% y/y to $57.2 million, significantly exceeding the $43.7 million estimate.
- Total net revenue was $1.40 billion, a decrease of 3.2% y/y but exceeding an estimate of $1.35 billion.
- R&D expenses of $245.5 million were reported, slightly above the estimate of $243.7 million.
- An operating loss of $2.71 billion was recorded, greater than the previous year’s loss of $702.4 million.
- Take-Two’s outlook shows a shift in the release window for Rockstar Games’ Grand Theft Auto VI – from Calendar 2025 to Fall of Calendar 2025.
- The company’s GAAP results include impairment charges of $2.34 billion related to goodwill and $577.4 million for acquisition-related intangible assets along with business reorganization expenses of $104.6 million because of cost-reduction programs.
Take Two Interactive Software, Inc on Smartkarma
Analyst coverage of Take-Two Interactive Software, Inc on Smartkarma reveals insights from Baptista Research. According to Baptista Research, in a report titled “Take-Two Interactive Software: The Realization Of The Zynga Acquisition Synergies Is Now Evident & How! – Major Drivers,” Take-Two Interactive Software, Inc. posted strong results for Q3 FY2024. The company saw significant success driven by titles like Grand Theft Auto V, Grand Theft Auto Online, the Red Dead Redemption series, and Zynga’s in-app purchases, with net bookings reaching $1.3 billion for the quarter. This analysis leans towards a bullish sentiment.
Additionally, Baptista Research also provided an outlook in their report “Take-Two Interactive Software Inc.: What Are The Biggest Drivers For Its Future Growth? – Financial Forecasts.” They noted that while the recent results of Take-Two Interactive Software, Inc. were a mixed bag, with revenues surpassing Wall Street expectations but earnings falling short. Grand Theft Auto V, Grand Theft Auto Online, and Red Dead Redemption 2 performed well, with strong sales numbers. This report also suggests a bullish sentiment towards the future growth prospects of Take-Two Interactive Software, Inc.
A look at Take Two Interactive Software, Inc Smart Scores
| Factor | Score | Magnitude |
|---|---|---|
| Value | 3 | |
| Dividend | 1 | |
| Growth | 2 | |
| Resilience | 3 | |
| Momentum | 3 | |
| OVERALL SMART SCORE | 2.4 |
Smart Score is a compound score for the Company indicating its overall outlook. It is derived by taking an equally weighted average of underlying Factor scores computed by Smartkarma
Take-Two Interactive Software, Inc., a leading developer in interactive entertainment software games, is projected to have a steady long-term outlook based on the Smartkarma Smart Scores. With a mixed bag of ratings, the company scores fairly in terms of value and resilience at 3 each. This indicates a balanced standing in terms of intrinsic worth and ability to withstand market fluctuations. However, areas for potential improvement lie in growth and dividend scores, which came in at 2 and 1 respectively. Despite this, the company shows promising momentum, scoring a solid 3 in that category. Take Two’s diverse product offerings, which include games for multiple platforms delivered through various channels, position it well for future success.
Overall, Take-Two Interactive Software, Inc. presents a resilient front in the competitive world of interactive entertainment, as indicated by its Smartkarma Smart Scores. While areas like dividend and growth may require attention, the company’s strong momentum coupled with its value proposition suggests a positive trajectory in the long run. With a range of products catering to different gaming platforms and distribution methods, Take Two continues to adapt to the evolving gaming landscape. Investors eyeing stability and growth potential in the gaming industry may find Take-Two Interactive Software, Inc. a company worth considering in their portfolios.
Disclaimer: This article by Smartkarma is general in nature and based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. Note that our articles may not factor in the latest price-sensitive company announcements or qualitative material.
While all reasonable care has been taken in the preparation, Smartkarma makes no assurance about the accuracy of any generated data or content. All content is indicative only and should be independently checked for accuracy and confirmed before use. Smartkarma accepts no responsibility for any loss or damage caused as a result of any inaccuracy or error within the Lab online tools or generated data.
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