Benchmark Maintains Buy Following Take-Two Interactive Software's (TTWO) 4Q15 Results and Guidance
Benchmark maintains a Buy rating on Take-Two Interactive (NASDAQ: TTWO), and raised the price target to $33.88 (from $31.29), following 4Q15. TTWO reported sales of $428M (Guide: $410 - $460M) compared to the Street estimate of $465M. Adjusted EPS was reported at $0.49, (Guide: $0.15 to $0.25) Street: $0.28.
Benchmark analyst Mike Hickey commented on TTWO, saying, "The delay of GTA V for PC was offset (relative our estimates) primarily by strong catalog sales including: GTA V and GTA Online and strong digital sales growth, up 66% y/y. We have made a significant adjustment to our model to more accurately account for recurring digital sales and the player trend toward full game downloads, as both categories are increasingly more critical to correctly modeling performance."
Hickey also added, "The Company guided a sales range of $1.3B - $1.4B (Street: $1.5B / Benchmark: $1.5B) over an adjusted EPS range of $0.75 - $1.00 per share (Street: $1.25 / Benchmark: $1.19). We suspect continued digital sales strength led by GTA Online and NBA 2K, along with the industries accelerated transition to full game downloads; could aggregate to drive financial upside."
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Shares of Take-Two Interactive closed at $28.62 yesterday.