Take-Two shares fall in premarket on mixed outlook
NEW YORK (AP) — Shares of Take-Two Interactive Software fell before Tuesday's opening bell after the video game company reported steep jumps in both quarterly profit and revenue, but offered mixed guidance for the current quarter and full year.
In premarket trading, shares of Take-Two Interactive Inc. fell $1.10, or 5.8 percent, to $17.80. On Monday, the shares climbed to their highest price in more than five years before the earnings announcement.
Take-Two said its fiscal third-quarter results got a boost from strong sales of the newest games in its "Grand Theft Auto," ''NBA 2K," and "WWE 2K" franchises. Excluding one-time items, Take-Two's profit more than doubled and revenue grew 90 percent.
The company's adjusted profit and revenue beat Wall Street predictions. It also boosted its guidance for the rest of its fiscal year ending in March, but its fourth-quarter guidance fell short.
Benchmark analyst Mike Hickey cut his rating for the stock to "Hold" from "Buy," saying that the stock's risks and rewards now seem to be balanced. He said that while Take-Two will continue to get a boost from demand for "Grand Theft Auto V," there currently isn't much else in its product pipeline to move the stock higher.
But Stifel Nicolaus' Drew Crum backed his "Buy" rating for the stock, saying that while details surrounding the company's upcoming new games remain murky, he expects it to make product announcements down the road, which should send the shares up.