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Rap Sheet

Author:

LongTerm CapGains

Subject:

Off Topic

Date:

05/18/15 at 3:32 PM CDT

 

 

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Sentiment:

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TTWO Halted

  • Take-Two Halted: FYQ4 Rev Misses, Q2 View Crushes Consensus, Year View Misses By Tiernan Ray

    Shares of video game maker Take-Two Interactive Software (TTWO), makers of the “Grand Theft Auto” titles, were halted this afternoon in late trading just before the company announced a very mixed report: fiscal Q4 revenue missed analysts’ expectations, but profit beat; the forecast for this quarter’s results is much, much higher than consensus; and the forecast for year revenue and profit is well below consensus.

    Revenue in the three months ended in March rose 83%, year over year, to $427.7 million, on a non-GAAP basis, yielding EPS of of 49 cents, excluding some costs.

    Analysts had been modeling $465 million in revenue and 28 cents EPS.

    The company also said it raised its share buyback authorization to 10 million shares in total.

    CEO Strauss Zelnick called the results “strong” and an “outstanding close to one of our Company’s best years ever,” and said the company “achieved record digitally-delivered revenue, including our highest-ever revenues from recurrent consumer spending.

    Zelnick added the year is “off to a great start, highlighted by the April launch of Grand Theft Auto V for the PC, which has exceeded our expectations.”

    “Beyond fiscal 2016, we have a robust development pipeline and our Company is well-positioned to deliver growth and margin expansion over the long-term.”

    For the current quarter, the company sees revenue of $325 million to $350 million, and EPS of 25 cents to 35 cents, well above the average estimate for $207 million and a penny-per-share in profit,

    For this fiscal year, the company sees revenue of $1.3 billion to $1.4 billion, below consensus for $1.51 billion, with EPS projected in a range of 75 cents to $1, below the consensus of $1.21 per share.

    Take-Two shares were at $24.20 in late trading when the halt was put in; the stock is set to resume trading at 4:25 pm, Eastern time.

Up 5% on terrible current year guidance of $0.75-$1.00, to $25.50. My only position is short $24 puts which I'll probably be content to close before expiration for profit. No hint of RDR2 in that guidance, and as I've said before it's getting a bit late in the year to be talking about for this FY.


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Author:

Jester Debunker

Subject:

Off Topic

Sentiment:

Neutral

Date:

05/18/15 at 3:37 PM CDT

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