3 Take-Two Interactive Software Analysts Express Concern Around FQ3 Print, Guidance

Shares of Take-Two Interactive Software, Inc TTWO climbed in early trading on Tuesday, despite the company reporting disappointing fiscal third-quarter results and lowering guidance.

• Raymond James analyst Andrew Marok maintained a Market Perform rating on the stock.
• Oppenheimer's Martin Yang reaffirmed an Outperform rating and price target of $145.
• Benchmark analyst Mike Hickey reiterated a Buy rating and price target of $120.

Check out other analyst stock ratings.

Raymond James

• “Take-Two reported F3Q23 results below expectations as the tighter macro market caused players to concentrate time and money spent into fewer, higher-profile games,” which worked against the company as its releases for the quarter “tended more toward the mid scale,” Marok said in a note.
• “Catalog sales were solid, but the trends in new releases caused management to reduce its FY23 bookings outlook by ~$200M,” he added.

Oppenheimer

• “TTWO reported worse than expected F3Q net bookings/non-GAAP EPS results: $1.382B/$0.86 missing consensus by 5.5% and 3.4%,” Yang said.
• “Management reduced FY23 guidance by 5%, attributed to weaker consumer discretionary spending and game monetization despite all-time high engagement,” the analyst wrote. “With underperforming monetization and lack of sufficient visibility beyond FY23, TTWO investors will have to be patient in the very near term."

Benchmark

• “TTWO delivered disappointing F3Q23 results, missing consensus view on both net bookings and profitability," Hickey wrote in a note. “TTWO reduced FY23 net bookings and AEPS by 4% and 11%, respectively."
• “We note a massive discrepancy between our FY24-FY25 estimates vs. consensus; we are identifying meaningful execution risk on upcoming FY24 initiated guidance,” the analyst further stated.

TTWO Price Action: Shares of Take-Two Interactive Software had risen by 5.52% to $111.39 at the time of publication Tuesday.