Take-Two Interactive Software shares spiked Thursday after the video game publisher beat Wall Street's targets for the September quarter and provided reassuring guidance for the year ahead. TTWO stock broke out on the news.
The New York City-based company late Wednesday said it earned an adjusted 66 cents a share on net bookings of $1.47 billion in its fiscal second quarter ended Sept. 30. Analysts polled by FactSet expected earnings of 42 cents a share on adjusted sales of $1.45 billion in fiscal Q2. On a year-over-year basis, Take-Two earnings fell 46% while net bookings increased 1%.
"It was another consecutive quarter of strong results led by the great portfolio of industry-leading intellectual properties that we're lucky to have," Chief Executive Strauss Zelnick told Investor's Business Daily. Those properties include "Grand Theft Auto," "Borderlands" and "NBA 2K."
"We're reiterating our net bookings guidance for the fiscal (year 2025) and we're also confident that we'll achieve record levels of net bookings in fiscal 2026 and 2027," Zelnick said.
On the stock market today, TTWO stock popped 7.5% to close at 179.17. Earlier in the session, it climbed as high as 180.53.
With the move, TTWO stock broke out of a 40-week consolidation pattern with a buy point of 171.59, according to IBD MarketSurge charts.
TTWO Stock Scores Price-Target Hikes
At least eight Wall Street analysts raised their price targets on TTWO stock after the company's earnings report.
BMO Capital Markets analyst Brian Pitz kept his outperform rating on TTWO stock and raised his price target to 190 from 185. In a client note, he called Take-Two his "top pick" in interactive entertainment.
Pitz noted that Take-Two is seeing continued momentum for its mobile games, including Zynga studio titles "Match Factory" and "Toon Blast."
Benchmark analyst Mike Hickey maintained his buy rating and price target of 210 on TTWO stock.
"We believe the company's valuation still doesn't capture its explosive growth potential ahead," Hickey said. He cited the release of "Grand Theft Auto 6," scheduled for fall 2025, as an example.
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