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Take-Two Interactive Software Inc. reported a better-than-expected outlook and results late Monday as sales gained a holiday boost during the COVID-19 pandemic, but shares of the videogame publisher slipped in extended trading.
Take-Two TTWO, +2.82% shares were last down 1% after hours, following a 2.8% gain in the regular session to close at $213.14. Take-Two publishes such franchises as “Grand Theft Auto” and “Red Dead Redemption” under its Rockstar Games label, and “Borderlands” and “NBA2K” under its 2K label.
The company reported fiscal third-quarter net income of $182.2 million, or $1.57 a share, compared with $163.6 million, or $1.43 a share, in the year-ago period.
Revenue declined to $860.9 million from $930.1 million in the year-ago quarter. Analysts surveyed by FactSet had forecast $1.12 a share on revenue of $757.5 million.
“Due to an incredibly strong holiday season, coupled with our ability to provide consistently the highest-quality entertainment experiences, especially as many individuals continue to shelter at home, Take-Two delivered operating results that significantly exceeded our expectations,” said Strauss Zelnick, Take-Two’s chief executive and chairman, in a statement.
Take-Two forecast earnings of 88 cents to 98 cents a share on revenue of $702 million to $752 million for the fourth quarter, and $4.08 to $4.18 a share on revenue of $3.24 billion to $3.29 billion for the year. Analysts had estimated 59 cents a share on revenue of $584.1 million for the fourth quarter, and $3.69 a share on revenue of $3.29 billion for the year.
In January, Take-Two dropped its bid for Codemasters Group Holdings PLC CDM, +0.33% after Electronic Arts Inc. EA, +0.88% offered more for the U.K.-based racing games publisher.
Over the past 12 months, Take-Two shares have surged 89%, while the iShares Expanded Tech-Software Sector ETF IGV, +0.21% is up 47%, the S&P 500 index SPX, +0.74% has gained 18%, and the tech heavy Nasdaq Composite Index COMP, +0.95% is up 47%.
Last week, EA shares retreated from a record closing high after the videogame publisher reported quarterly results that fell short of Wall Street expectations while Activision Blizzard Inc. ATVI, -0.41% shares soared following results.
For their part, EA shares are up 31% over the past 12 months, while Activision Blizzard shares are up 64%.
