Take-Two Interactive Software (TTWO) Misses Q2 EPS by 60c, Revenues Miss; Offers FY21 EPS Guidance Below Consensus, FY21 Revenue Outlook Above Consensus
Take-Two Interactive Software (NASDAQ: TTWO) reported Q2 EPS of $0.86, $0.60 worse than the analyst estimate of $1.46. Revenue for the quarter came in at $841.1 million versus the consensus estimate of $847.83 million.
- GAAP net revenue was $841.1 million
- GAAP net income per diluted share increased 37% to $0.86
- GAAP net cash provided by operating activities for the six-months ended September 30, 2020 increased 335% to $626.7 million
- Adjusted Unrestricted Operating Cash Flow (Non-GAAP) for the six-months ended September 30, 2020 increased 1135% to $509.4 million
- Net Bookings grew to $957.5 million
- Company raises outlook for fiscal year 2021, including record Net Bookings
Management Comments
“Our positive momentum continued in the fiscal second quarter with operating results that significantly exceeded our expectations,” said Strauss Zelnick, Chairman and CEO of Take-Two. “Our terrific results were highlighted by the outperformance of NBA 2K, PGA TOUR 2K21, and the Mafia: Definitive Editions and Mafia: Trilogy, reflecting our ability to deliver consistently the highest quality entertainment experiences to consumers.
“As a result of our better-than-expected second quarter operating results and increased forecast for the balance of the year, we are raising our fiscal 2021 outlook, and we now expect record Net Bookings of over $3 billion.
“With the strongest development pipeline in the history of the Company and our ongoing investment in emerging markets, platforms and business models, Take-Two is exceedingly well positioned to capitalize on the many positive trends in our industry and to generate growth and margin expansion over the long-term.”
GUIDANCE:
Take-Two Interactive Software sees Q3 2021 EPS of $1.10-$1.21, versus the consensus of $0.70. Take-Two Interactive Software sees Q3 2021 revenue of $760-810 million, versus the consensus of $688.31 million.
Take-Two Interactive Software sees FY2021 EPS of $3.22-$3.49, versus the consensus of $4.92. Take-Two Interactive Software sees FY2021 revenue of $3.05-3.15 billion, versus the consensus of $3.04 billion.
Take-Two is providing its initial outlook for its fiscal third quarter ending December 31, 2020 and increasing its outlook for the fiscal year ending March 31, 2021:
Third Quarter Ending December 31, 2020
- GAAP net revenue is expected to range from $760 to $810 million
- GAAP net income is expected to range from $128 to $140 million
- GAAP diluted net income per share is expected to range from $1.10 to $1.21
- Share count used to calculate both GAAP and management reporting diluted net income per share is expected to be 115.9 million (1)
- Net Bookings (operational metric) are expected to range from $675 to $725 million
Fiscal Year Ending March 31, 2021
- GAAP net revenue is expected to range from $3.05 to $3.15 billion
- GAAP net income is expected to range from $372 to $403 million
- GAAP diluted net income per share is expected to range from $3.22 to $3.49
- Share count used to calculate both GAAP and management reporting diluted net income per share is expected to be 115.5 million (3)
- Net cash provided by operating activities is expected to be over $690 million
- Adjusted Unrestricted Operating Cash Flow (Non-GAAP) is expected to be over $650 million (4)
- Capital expenditures are expected to be approximately $75 million
- Net Bookings (operational metric) are expected to range from $3.15 to $3.25 billion
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