Take-Two Interactive Rallies After Upbeat Commentary

Take-Two Interactive Software (TTWO:US) shares moved sharply higher on Thursday after the video game developer reported its fourth-quarter fiscal results. 

The company reported a loss of $3.62 a share on revenue of $1.45 billion, in addition to net bookings of $1.4 billion. Analysts were looking for a loss per share of $1.22 on revenue and net bookings of $1.35 billion and $1.34 billion, respectively. 

“We finished fiscal 2023 with momentum. Our fourth quarter Net Bookings were $1.4 billion, above the high end of our guidance range, driven by Grand Theft Auto V and Grand Theft Auto Online, Red Dead Redemption 2, and Zynga’s mobile portfolio,” said Strauss Zelnick, Chairman and CEO of Take-Two.

For this quarter, the company expects to report a loss per share of $1.00 on revenue of $1.235 billion, at the midpoint of the indicated range. Analysts were expecting a loss per share of $0.19 on revenue of $1.42 billion.

For the year, Take-Two sees a loss per share of $3.05 to $2.80 on revenue of $5.37 - $5.47 billion. The Street was expecting a loss of $1.45 per share on revenue of $6.1 billion.

While guidance was underwhelming, shares still soared 10% after management confirmed that the blockbuster franchise ‘Grand Theft Auto VI’ will be released next fiscal year.

“We believe that we will enter our next phase of growth in fiscal 2025, as we plan to deliver several groundbreaking titles that we anticipate will set new standards of quality and success and enable us to deliver over $8 billion in net bookings and over $1 billion in adjusted unrestricted operating cash flow,” Zelnick added.

Congressman Ro Khanna was seen trading TTWO shares in recent months. Additionally, Rep. Thomas Kean Jr also reported he bought some TTWO shares earlier this year.