Take-Two Interactive Reports Higher Losses But Beats Estimates

Take-Two Interactive reports a Q3 loss of $125.2M, surpassing expectations. Despite a slight revenue decline, the EPS outlook improves slightly. Insight into the company's financials may influence investor sentiment.

Date: 07-02-2025

AI Rating: 6

Take-Two Interactive Software Inc reported a **loss** for its third quarter that increased compared to the same period last year. The company reported a net loss of -$125.2 million, or -$0.71 per share, which is an increase from -$91.6 million, or -$0.54 per share, in the previous year. The fact that the loss beat analysts' expectations of -$0.90 per share indicates some resilience in the company's performance despite a growing loss. This could be interpreted positively by investors, as it suggests better-than-anticipated control over losses and operational management. In terms of revenue, Take-Two’s performance was slightly negative. The company's revenue fell 0.5% to $1.359 billion from $1.366 billion last year. This minor decline in revenue might not invoke significant concern, but it shows that the company is facing challenges in maintaining its revenue levels year-over-year. Looking ahead, the **guidance** provided by Take-Two offers a mixed outlook. For the next quarter, the EPS guidance ranges from -$0.20 to $0.13, while the revenue guidance ranges from $1,519 million to $1,619 million. Both these ranges show potential for improvement and could positively affect investor sentiment if realized. Additionally, the full-year EPS guidance ranges from -$4.50 to -$4.17 and the full-year revenue guidance is set between $5,570 million to $5,670 million. The narrowing of the EPS loss guidance can be considered a slightly positive sign for investors. Overall, the information regarding EPS and revenue presents a cautious narrative. Investors might view the ability to beat earnings expectations amidst increased losses as a resilient aspect of Take-Two's performance, balancing the slight revenue decline. Furthermore, the guidance for the upcoming quarters may impact future stock price movements, particularly if the company can meet or exceed these expectations.

Stocks: TTWO