TLDR
- Take-Two stock was up 2.7% in premarket trading Tuesday.
- Q2 bookings fell 18% to $1.6 billion, below the $1.62 billion estimate.
- Fiscal 2027 bookings guidance of $8 billion to $8.2 billion trails the $8.62 billion forecast.
- Jefferies kept its Buy rating and $300 price target.
- GTA VI launches Nov. 19, and Sensor Tower pegs sales at 7.71 million units so far.
Take-Two Interactive (TTWO) stock was up 2.7% in premarket trading Tuesday after a quarter that came in light. The calendar may matter more than the report, since Grand Theft Auto VI is due Nov. 19.
Take-Two Interactive Software, Inc., TTWO
Bookings for the quarter ended Sept. 30 fell 18% to $1.6 billion. That was just under the $1.62 billion Wall Street expected.
The company blamed NBA 2K27, which hit stores Sept. 4 and brought in less than planned. Jefferies said bookings landed $20 million below the low end of guidance.
Take-Two reported a net loss of 29 cents per share. Analysts had penciled in a loss of 86 cents.
Mobile was another weak spot. Bookings there fell 14% from a year ago against tough comparisons to Color Block Jam and Match Factory.
The Outlook Gap
Take-Two repeated its fiscal 2027 bookings guidance of $8 billion to $8.2 billion. Analysts were looking for $8.62 billion.
For the fiscal third quarter, it expects net bookings of $3.35 billion to $3.5 billion. That is roughly what the Street had modeled.
Investing.com put revenue at $1.5 billion against a $1.58 billion forecast. Either way, the quarter landed on the soft side.
Jefferies analyst James Heaney called the results not thesis-changing. The firm kept its Buy rating and $300 price target.
The stock is down 19% so far this year. Revenue is still up 15% over the last twelve months.
Ten Days to GTA VI
GTA VI arrives more than 13 years after its predecessor. GTA V is still one of the best-selling games ever made.
Sensor Tower says 7.71 million units have sold, worth $751 million. GTA V earned about $800 million in its first 24 hours.
CEO Strauss Zelnick said preorders continue “to reach unprecedented levels.” He told Barron’s it is “just uncharted territory with preorders trending well above our expectations.”
“We know that the numbers will speak for themselves soon enough,” Zelnick said. Management kept its full-year guidance on the strength of those orders.
Analysts forecast 29% revenue growth for fiscal 2027, driven largely by the game. InvestingPro data shows 17 analyst ratings averaging Strong Buy.
GTA VI is set to launch Nov. 19, ten days after Take-Two reported.
