Take Two Interactive Software Earnings: Here’s Why Investors Are Mixed

Take – Two Interactive Software Inc. (NASDAQ:TTWO) reported its results for the fourth quarter. Take-Two Interactive Software is a global publisher, developer and distributor of interactive entertainment software and hardware.

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Take – Two Interactive Software Earnings Cheat Sheet for the Fourth Quarter

Results: Loss widened to $66.8 million (79 cents per diluted share) from $22.1 million (loss of 27 cents per share) in the same quarter a year earlier.

Net Revenue: Fell 18.7% to $148.1 million from the year-earlier quarter.

Actual vs. Wall St. Expectations: Take – Two Interactive Software Inc. reported an adjusted net loss of 71 cents per share. By that measure, the company fell short of the mean analyst estimate of a loss of 60 cents per share. It beat the average revenue estimate of $139.9 million.

Quoting Management: “Fiscal 2012 was a year of creative, operational and strategic achievement by our Company,” said Strauss Zelnick, Chairman and CEO of Take-Two. “We delivered groundbreaking titles, including L.A. Noire and NBA 2K12, which set new standards for excellence; grew our revenue from digitally delivered content and mobile offerings; made substantial progress on our online gaming initiatives; and bolstered our already strong liquidity through a convertible notes offering. While our financial results were disappointing, the decisions we made position Take-Two for growth and profitability both this year and over the long-term.

Key Stats:

After beating analyst estimates for the two previous quarters, the company fell short of forecasts. In the third quarter, it topped the mark by one cent, and in the second quarter, it was ahead by 7 cents.

Looking Forward: Analysts appear increasingly negative about the company’s results for the next quarter. The average estimate for the first quarter of the next fiscal year has moved down from a profit of 31 cents a share to a loss of 5 cents over the last thirty days. The average estimate hasn’t changed from 98 cents per share for the fiscal year.

(Company fundamentals provided by Xignite Financials. Earnings estimates provided by Zacks)

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