Take-Two unveils disappointing third-quarter bookings forecast
Investing.com — Take-Two (NASDAQ:TTWO) has reported lower than anticipated current-quarter net bookings, but the video game maker said it remained «well positioned» for the holiday season.
Shares in the company were higher in premarket U.S. trading on Thursday, in a sign that investors remain optimistic around the reported launch of the latest installment in Take-Two subsidiary Rockstar Games' «Grand Theft Auto» series early next month. Analysts widely anticipate that the title will be an instant hit.
However, the group projects net bookings -- the amount of products and services sold digitally or physically — of between $1.30 billion and $1.35 billion in its third quarter, below Bloomberg consensus estimates of $1.39B. Expected adjusted earnings per share of $0.65 to $0.75 were also under forecasts of $0.94, with Take-Two flagging the impact of «continued macroeconomic uncertainty» on gaming demand.
Yet the firm reiterated its fiscal 2024 net booking guidance of $5.45B to $5.55B, as Chief Executive Strauss Zelnick said the business was «confident» heading into the key holiday shopping season.
«I think it's the strength of our catalog and the strength of our products, and a lot of our releases are must-have releases,» Zelnick told analysts in a call on Wednesday.
In the three months ended on Sept. 30, New York-based Take-Two reported a 4% fall in net bookings to $1.44B, in-line with the company's estimate of $1.4B to $1.45B.
Adjusted earnings per share came in at $1.22, topping Wall Street estimates of $1.02 and above the high-end of Take-Two's guidance range of $0.95 to $1.05.
Yasin Ebrahim contributed to this report.
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