NBA 2K16 and the GTA franchise (GTA V and GTA Online) helped TTWO to blow out F2Q results. Revenue of $364.93M beat consensus of $325M by 12% and EPS of $0.30 doubled consensus of $0.15. There is now more visibility into FY17 than before, though there is no word yet on the launch of the next Red Dead title.

Digital revenue of $141M was +57% y/y, vs. last quarter of +139% y/y and the March quarter of +66% y/y. Recurrent digital spending was also strong (39% y/y) and represented 51% of digital revenue. Last quarter recurrent digital spending was up 47% y/y and represented 36% of digital revenue.

Management raised full year revenue guidance to $1.325B to $1.425 from $1.3B to $1.4B, or ~$25M at the midpoint, or less than the ~$65M beat this quarter. The benefits from strong results and a $20M one time R&D tax benefit was offset by Battleborn shifting out of F4Q’16 and into F1Q’17.

Arvind Bhatia from Sterne Agee CRT raised his price target to $39 from $35 based on 17x earnings for FY17 + FY18 + cash of more than $1B in cash ($9.34 per share). No change to Buy rating.

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Shares of Take-Two Interactive closed at $33.05 yesterday.