Take-Two Interactive Software: Mixed Opinions on Earnings Outlook

Take-Two Interactive Software, Inc. recently released its third-quarter results, and the response from investors was less than enthusiastic, with shares down 7.2% in the past week. While revenues were in line with expectations, the company managed to surpass projections for losses per share, with a 25% reduction compared to analyst estimates.

Looking ahead, analysts have mixed opinions on Take-Two Interactive Software. The consensus among 23 analysts is for revenues of $7.38 billion in 2025, representing a significant 37% increase compared to the past 12 months. However, the forecast indicates that the losses per share will narrow by 88% to $1.01 in the near future.

Before the latest earnings release, analysts had anticipated higher revenues of $7.74 billion and losses per share of $0.31 in 2025. This discrepancy suggests that the update has resulted in downgraded revenue expectations and an increase in per-share losses.

Interestingly, the average price target remained relatively unchanged at $175, implying that the weaker earnings outlook is not expected to have a long-term impact on the company’s valuation.

While there are some diverse opinions among analysts regarding the stock, the range in estimates does not imply an unpredictable situation. The most optimistic analyst values the stock at $200 per share, while the most pessimistic forecasts a value of $130 per share.

When evaluating Take-Two Interactive Software, it’s important to consider the company’s forecasted growth in relation to industry peers. Analysts expect the company’s growth to accelerate, with a projected 28% annual increase until the end of 2025. This growth ranking is favorable compared to the historical growth rate of 15% per annum over the past five years. In contrast, other companies in the same industry are projected to achieve revenue growth of 8.1% annually.

In summary, while the forecast indicates increased losses for Take-Two Interactive Software next year, the company is still expected to outpace industry growth. The consensus price target remained unchanged, indicating little change in the intrinsic value of the business. Long-term prospects may be more relevant than short-term fluctuations, and investors can explore estimates going as far as 2026 to gain a more comprehensive understanding.

An FAQ section based on the main topics and information presented in the article:

Q: What were Take-Two Interactive Software’s third-quarter results?
A: Take-Two Interactive Software’s third-quarter revenues were in line with expectations, but they managed to surpass projections for losses per share with a 25% reduction compared to analyst estimates.

Q: What is the forecast for Take-Two Interactive Software’s revenues in 2025?
A: The consensus among analysts is for revenues of $7.38 billion in 2025, representing a significant 37% increase compared to the past 12 months.

Q: What is the forecast for Take-Two Interactive Software’s losses per share in the near future?
A: The forecast indicates that the losses per share will narrow by 88% to $1.01 in the near future.

Q: How do the latest earnings release affect revenue expectations and per-share losses?
A: The latest earnings release has resulted in downgraded revenue expectations and an increase in per-share losses compared to the analysts’ previous forecasts.

Q: What is the average price target for Take-Two Interactive Software?
A: The average price target remained relatively unchanged at $175, implying that the weaker earnings outlook is not expected to have a long-term impact on the company’s valuation.

Q: What is the range of price estimates from analysts for Take-Two Interactive Software’s stock?
A: The most optimistic analyst values the stock at $200 per share, while the most pessimistic forecasts a value of $130 per share.

Q: How does Take-Two Interactive Software’s projected growth compare to industry peers?
A: Analysts expect Take-Two Interactive Software’s growth to accelerate, with a projected 28% annual increase until the end of 2025. This growth ranking is favorable compared to the historical growth rate of 15% per annum over the past five years. In contrast, other companies in the same industry are projected to achieve revenue growth of 8.1% annually.

Q: Should investors focus on short-term fluctuations or long-term prospects for Take-Two Interactive Software?
A: Long-term prospects may be more relevant than short-term fluctuations. Investors can explore estimates going as far as 2026 to gain a more comprehensive understanding of the company’s prospects.

Definitions for any key terms or jargon used within the article:

– Revenues: The total amount of money earned by a company through its business activities.
– Losses per share: The monetary losses a company incurs for each outstanding share of its stock.
– Analyst estimates: Projections or forecasts made by financial analysts regarding a company’s financial performance or stock valuation.
– Price target: The anticipated price at which a stock is expected to trade in the future, as estimated by financial analysts.
– Valuation: The process of determining the worth or value of a company or its assets.
– Intrinsic value: The perceived or calculated value of a company, considering its fundamental characteristics, rather than relying solely on market factors.
– Forecasted growth: The predicted rate of increase in a company’s revenues or profits over a specific period.
– Industry peers: Other companies operating in the same industry or sector.
– Historical growth rate: The rate of growth in a company’s revenues or profits over a past period, typically measured annually.
– Fluctuations: Changes or variations in the value or level of something, such as a company’s earnings or stock price.

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