Why Take-Two Stock Is Taking Off After Hours

Take-Two Interactive Software Inc TTWO shares are trading higher after the close Wednesday on the heels of the company's fourth-quarter results. 

What Happened: Take-Two reported fourth-quarter revenue of $1.45 billion, up 56% year-over-year. Recurrent consumer spending, which includes virtual currency, add-on content, in-game purchases and in-game advertising, increased 94%. 

The company said bookings totaled $1.39 billion during the quarter, above company expectations, driven by "Grand Theft Auto V" and "Grand Theft Auto Online," "Red Dead Redemption 2" and Zynga's mobile portfolio.

Take-Two reported a fourth-quarter loss of $610.3 million, or $3.62 per share. The company anticipates a first-quarter net loss of $161 million to $178 million. 

"We also issued guidance for Fiscal 2024, which includes Net Bookings in the range of $5.45 to $5.55 billion. Our forecast reflects the challenging consumer backdrop, as well as an extension of the development timelines for several high-profile, long-awaited titles in our pipeline," said Strauss Zelnick, chairman and CEO of Take-Two.

Take-Two said it expects its next phase of growth to take place in fiscal 2025 and sustain that momentum into fiscal 2026. 

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TTWO Price Action: Take-Two shares were up 10.6% after hours at $138.75 at the time of writing, according to Benzinga Pro.

Photo: A Disappearing Act from Flickr.