Take-Two Interactive Software First Quarter Earnings Sneak Peek

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Take-Two Interactive Software, Inc. (NASDAQ:TTWO) will unveil its latest earnings tomorrow, Tuesday, July 31, 2012. Take-Two Interactive Software is a global publisher, developer and distributor of interactive entertainment software and hardware.

Take-Two Interactive Software, Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for a loss of 78 cents per share, a wider loss from the year-earlier quarter net loss of 7 cents. During the past three months, the average estimate has moved down from 9 cents. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of 78 cents during the last month. For the year, analysts are projecting net income of $1.81 per share, a spike from net loss of $1.11 last year.

Past Earnings Performance: Last quarter, the company missed estimates by 12 cents, coming in at a loss of 72 cents per share versus a mean estimate of net loss of 60 cents per share. In the third quarter of the last fiscal year, the company beat estimates by one cent.

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A Look Back: In the fourth quarter of the last fiscal year, the company’s loss widened to a loss of a $66.8 million (80 cents a share) from a loss of $22.1 million (26 cents) a year earlier, missing analyst expectations. Revenue fell 18.7% to $148.1 million from $182.3 million.

Stock Price Performance: Between April 30, 2012 and July 27, 2012, the stock price fell $5.20 (-36.36%), from $14.30 to $9.10. The stock price saw one of its best stretches over the last year between September 6, 2011 and September 16, 2011, when shares rose for nine straight days, increasing 11.1% (+$1.40) over that span. It saw one of its worst periods between May 10, 2012 and May 18, 2012 when shares fell for seven straight days, dropping 12.3% (-$1.57) over that span.

Wall St. Revenue Expectations: Analysts are projecting a decline of 24.1% in revenue from the year-earlier quarter to $253.9 million.

Key Stats:

On the top line, the company is hoping to use this earnings announcement to snap a string of four-straight quarters of revenue decreases. Revenue fell 5.6% in the first quarter of the last fiscal year, 71.4% in second quarter of the last fiscal year and 29.3% in the third quarter of the last fiscal year and then fell again in the fourth quarter of the last fiscal year of the last fiscal year.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 3.4 last quarter. Having a ratio above 2:1 is usually considered a good indicator of a company’s liquidity and ability to meet creditor demands. The company regressed in this liquidity measure from 4.45 in the third quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 29.4% to $218.7 million while assets decreased 1.2% to $743.6 million.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and four rating the stock a hold, there are indications of a bullish stance by analysts.

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

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