Take-Two Interactive Software program’s TTWO shares have returned 17.8% yr so far (YTD), outperforming the Zacks Consumer Discretionary sector’s appreciation of 16.3% however underperforming the Zacks Toys-Games-Hobbies trade’s return of 20.2%.
TTWO’s shares have additionally outperformed friends like Nintendo NTDOY, Playtika PLTK, and UbiSoft Leisure UBSFY in the identical timeframe. Whereas NTDOY shares have appreciated 15.3%, PLTK and UBSFY shares have misplaced 5.7% and 48.4%, respectively, YTD.
TTWO shares’ efficiency could be attributed to the continued success of franchises like Grand Theft Auto, Borderlands and Pink Useless Redemption 2, and robust progress in Zynga titles and hyper-casual gaming.
Robust Flagship Franchises Assist TTWO’s Prospects
TTWO has been benefiting from the sturdy efficiency of its flagship franchises. Grand Theft Auto V has been exceeding expectations with over 205 million models bought, whereas Pink Useless Redemption 2 stays a bestseller, rating within the high 10 six years submit launch. NBA 2K25 has achieved distinctive scores and bought 4.5 million models, showcasing TTWO’s capacity to innovate and interact audiences.
Cellular gaming can also be considerably contributing to TTWO’s progress, with Zynga titles like Match Manufacturing facility and Toon Blast boosting top-line progress and robust monetization efforts in hyper-casual gaming performing as key catalysts.
TTWO’s promising pipeline consists of extremely anticipated titles like Grand Theft Auto VI, Borderlands 4, and Mafia: The Previous Nation for fiscal yr 2026. Moreover, Sid Meier’s Civilization VII and WWE 2K25 launches are anticipated to strengthen TTWO’s market management.
Nevertheless, TTWO faces stiff competitors from the trade giants like Digital Arts and Activision Blizzard, in addition to rising gamers. Macroeconomic uncertainties and sensitivity in client spending, notably in cellular gaming and recurrent income streams, additionally pose challenges.
The large 30.1% decline in promoting revenues within the second quarter of fiscal 2025 displays headwinds on this section. It underscores the necessity for TTWO to develop stronger promoting methods to maintain its progress trajectory.
TTWO’s Earnings Estimates Point out YoY Decline
For third-quarter fiscal 2025, Take-Two expects GAAP web revenues between $1.36 billion and $1.41 billion. Web bookings are anticipated to vary from $1.35 billion to $1.4 billion.
For the full-year fiscal 2025, TTWO expects GAAP web revenues between $5.57 billion and $5.67 billion. Web bookings are anticipated to vary from $5.55 billion to $5.65 billion.
The Zacks Consensus Estimate for third-quarter fiscal 2025 revenues is pegged at $1.39 billion, indicating year-over-year progress of three.69%. The consensus mark for earnings is at present pegged at 58 cents per share, down by 2 cents over the previous 30 days and indicating a year-over-year decline of 18.31%.
The Zacks Consensus Estimate for full-year fiscal 2025 revenues is pegged at $5.61 billion, indicating 5.2% year-over-year progress. The consensus mark for 2025 earnings is at present pegged at $2.51 per share, up by a penny over the previous 30 days and indicating flat year-over-year progress.
TTWO has crushed the Zacks Consensus Estimate in three of the trailing 4 quarters and missed as soon as, the typical shock being 199.65%.
Take-Two Interactive Software program, Inc. Worth and Consensus
Take-Two Interactive Software, Inc. price-consensus-chart | Take-Two Interactive Software program, Inc. Quote
Discover the most recent EPS estimates and surprises on Zacks Earnings Calendar.
What Ought to Buyers Do With TTWO Inventory?
TTWO is benefiting from the sturdy efficiency of its flagship franchises, progress in cellular gaming and a formidable content material pipeline, amid intense competitors and macroeconomic uncertainties.
TTWO at present carries a Zacks Rank #3 (Maintain), suggesting that it might be clever for buyers to attend for a extra favorable entry level within the inventory. You’ll be able to see the complete list of today’s Zacks #1 Rank (Strong Buy) stocks here.
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Take-Two Interactive Software, Inc. (TTWO) : Free Stock Analysis Report
Nintendo Co. (NTDOY) : Free Stock Analysis Report
UbiSoft Entertainment Inc. (UBSFY) : Free Stock Analysis Report
Playtika Holding Corp. (PLTK) : Free Stock Analysis Report
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