New York-based Take-Two Interactive Software, Inc. (TTWO) develops, publishes, and markets interactive entertainment solutions. Valued at $27.6 billion by market cap, the company's products are for console systems, handheld gaming systems and personal computers and are delivered through physical retail, digital download, online, and cloud streaming services. The leading game publisher is expected to announce its fiscal second-quarter earnings for 2025 after the market closes on Wednesday, Nov. 6.
Ahead of the event, analysts expect TTWO to report a profit of $0.05 per share on a diluted basis, down 93.8% from $0.80 per share in the year-ago quarter. The company beat the consensus estimates in three of the last four quarters while missing the forecast on another occasion.
For the full year, analysts expect TTWO to report EPS of $1.05, up 15.4% from $0.91 in fiscal 2024. Its EPS is expected to rise 447.6% year over year to $5.75 in fiscal 2026.
TTWO stock has underperformed the S&P 500’s ($SPX) 36.8% gains over the past 52 weeks, with shares up 13% during this period. Similarly, it underperformed the Communication Services Select Sector SPDR ETF Fund’s (XLC) 33.9% gains over the same time frame.
TTWO's struggles stem from a 10% drop in weekly in-app purchases, the largest decline among Bloomberg-tracked gaming companies. Moreover, soft recurrent consumer spending, weak mobile advertising, and rising operating expenses have also contributed to its underperformance.
On Aug. 8, TTWO shares closed up more than 2% after reporting its Q1 results. Its adjusted EPS of $0.05 beat Wall Street expectations of $0.01. The company’s revenue stood at $1.3 billion, up 4.2% year over year. For Q2, TTWO expects its revenue to be between $1.29 billion and $1.34 billion. The company expects full-year revenue to be between $5.6 billion and $5.7 billion.
Analysts’ consensus opinion on TTWO stock is bullish, with a “Strong Buy” rating overall. Out of 24 analysts covering the stock, 19 advise a “Strong Buy” rating, two suggest a “Moderate Buy” rating, and three give a “Hold.” TTWO’s average analyst price target is $179.12, indicating a potential upside of 11.1% from the current levels.
On the date of publication, Neha Panjwani did not have (either directly or indirectly) positions in any of the securities mentioned in this article. All information and data in this article is solely for informational purposes. For more information please view the Barchart Disclosure Policy here.
