Video game publisher Take-Two Interactive Software late Thursday topped Wall Street's net bookings target for its fiscal fourth quarter but earnings were a hair light. Its guidance also was mixed. TTWO stock fell in extended trading.
The New York City-based company earned an adjusted $1.08 a share on net bookings of $1.58 billion in the quarter ended March 31. Analysts polled by FactSet had expected Take-Two to earn an adjusted $1.10 a share on net bookings of $1.55 billion. In the year-earlier period, Take-Two earned an adjusted 28 cents a share on net bookings of $1.35 billion.
For the current quarter, Take-Two forecast adjusted earnings of 25 cents a share on net bookings of $1.28 billion. That's based on the midpoint of its guidance. Wall Street was modeling adjusted earnings of 33 cents a share on net bookings of $1.26 billion for the fiscal second quarter ending June 30.
For the full fiscal year ahead, Take-Two expects to earn an adjusted $2.58 a share on net bookings of $5.98 billion, based on the midpoint of its outlook. In the just-finished fiscal 2025, Take-Two earned an adjusted $2.52 a share on net bookings of $5.65 billion.
Take-Two is known for popular game franchises such as "Grand Theft Auto," "Borderlands" and "NBA 2K."
In after-hours trading on the stock market today, TTWO stock slid 2.7% to 225.90. During the regular session Thursday, TTWO stock climbed 1.2% to close at 232.34.
Take-Two shares have been volatile since the company announced a delay for its highly anticipated title "Grand Theft Auto 6." TTWO stock hit a record high of 238 on May 1.
"We achieved outstanding results in our 2025 fiscal year, with each of our labels contributing meaningfully to our performance," Chief Executive Strauss Zelnick said in a news release.
He added, "Our fiscal 2026 outlook reflects continuing positive momentum, with net bookings guidance of $5.9 to $6 billion. As we bring our exciting lineup to market, including 'Grand Theft Auto 6' in fiscal 2027, we expect to achieve record levels of net bookings that will establish a new baseline for our business and set us on a path of enhanced profitability."
Higher Game Prices Coming
In an interview with Investor's Business Daily, Zelnick addressed the industry trend of rising prices for major game releases.
"I do see prices for some new releases rising because our competitors have announced their pricing," Zelnick said. "I think you'll probably see more variable pricing in the market and I think that's a good thing."
"Our job is to deliver way more value than whatever we charge for any title," he said. "We believe that entertainment pricing is based on per-hour engagement. And on that basis, interactive entertainment is an incredible bargain."
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