Wednesday, December 15, 2010

Take-Two Interactive Software (NASDAQ: TTWO): Q4 Earnings Preview 2010

. Wednesday, December 15, 2010

By Stock Wizard

Take-Two Interactive Software Inc. (NASDAQ: TTWO) is scheduled to release fiscal fourth quarter earnings after the closing bell on Thursday, December 16, 2010. Analysts, on average, expect the company to report earnings of 31 cents per share on revenue of $325.23 million. In the year ago quarter, the company reported earnings of 9 cents per share on revenue of $343.39 million.

Take-Two Interactive Software, Inc. publishes, develops, and distributes interactive entertainment software, hardware, and accessories worldwide. The company develops and publishes software titles for various gaming and entertainment hardware platforms, including PlayStation3 and PlayStation2 computer entertainment systems, PlayStation Portable system, Xbox 360 video game and entertainment system, and Wii and DS systems, as well as for the personal computer and games for Windows.

In the preceding fiscal-third quarter, the New York-based company's net income was $5.9 million, or 7 cents a share, compared with a net loss of $56.5 million, or 73 cents a share, in the year-earlier quarter. On an adjusted basis, the company earned 28 cents per share in the latest quarter. Revenue surged to $354.1 million from $94.9 million in the same quarter last year. Analysts, on average, expected the company to post a loss of 9 cents a share on revenue of $294.67 million.

At its last earnings call in September, the company lifted its outlook for fiscal fourth quarter and fiscal year 2010. Take Two said that it now expects revenue of $270 million to $320 million and non-GAAP earnings of 20 cents to 30 cents per share. Previously, the company anticipated revenue of $200 million to $250 million and a non-GAAP loss from continuing operations of 10 cents to 20 cents per share. For the fiscal year 2010, the company said that it now anticipates revenue of $1.05 billion to $1.1 billion and non-GAAP earnings of 60 cents to 70 cents per share. Previously, the Take-Two expected revenue of $880 million to $980 million and a non-GAAP loss from continuing operations of 10 cents to 30 cents per share.

The company also said it now expects L.A. Noire to be released during the first half of calendar 2011. Take-Two's 2011 title line-up currently includes Spec Ops: The Line, XCOM, L.A. Noire, Top Spin 4, and Duke Nukem Forever.

Take Two is often criticized for relying heavily on the blockbuster title Grand Theft Auto series to turn in a profit. The game series has gone on to sell more than 120 million units over its life to date, making it one of the top-selling games in history. The franchise represented more than 46% of the company's total net revenue in its most recent fiscal year. The latest in the series- "Grand Theft Auto IV", a huge commercial and critical success, was released in April of 2008. The next full-fledged GTA sequel is now expected in 2012.

In terms of stock performance, Take-Two shares have gained nearly 19% since the beginning of the year.

Full Disclosure: None.

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