Take-Two Second Quarter Earnings Sneak Peek

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) will unveil its latest earnings on Tuesday, October 30, 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 net loss of 23 cents per share, a narrower loss from the year-earlier quarter net loss of 56 cents. During the past three months, the average estimate has moved down from a loss of 3 cents. Between one and three months ago, the average estimate moved down. It has risen from a loss of 25 cents during the last month. For the year, analysts are projecting profit of $1.65 per share, a swing from a loss of $1.11 last year.

Past Earnings Performance: The company is looking to break the streak of missing estimates in the past two quarters. Last quarter, it fell short of analyst expectations by reporting net loss of $1.24 per share against an estimate of a loss of 78 cents per share. The quarter before that, it missed forecasts by 12 cents.

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A Look Back: In the first quarter, the company’s loss widened to a loss of a $110.8 million ($1.30 a share) from a loss of $8.7 million (11 cents) a year earlier, missing analyst expectations. Revenue fell 32.4% to $226.1 million from $334.4 million.

Wall St. Revenue Expectations: Analysts predict a rise of more than twofold in revenue from the year-earlier quarter to $240.1 million.

Stock Price Performance: Between July 31, 2012 and October 24, 2012, the stock price rose $2.46 (28%), from $8.78 to $11.24. The stock price saw one of its best stretches over the last year between September 5, 2012 and September 11, 2012, when shares rose for five straight days, increasing 8.9% (+88 cents) 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.

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 71.4% in the second quarter of the last fiscal year, 29.3% in third quarter of the last fiscal year and 18.7% in the fourth quarter of the last fiscal year and then fell again in the first quarter.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 2.8 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 3.4 in the fourth quarter of the last fiscal year to the last quarter driven in part by an increase in liabilities. Current liabilities increased 17.5% to $257 million while assets decreased 3.3% to $719.1 million.

Analyst Ratings: With 10 analysts rating the stock a buy, none rating it a sell and five 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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