Video game publisher Take Two (NASDAQ:TTWO) will be announcing earnings results tomorrow after the bell. Here's what to expect.
Take-Two beat analysts' revenue expectations by 3.4% last quarter, reporting revenues of $1.40 billion, down 3.2% year on year. It was a weak quarter for the company, with slow revenue growth.
Is Take-Two a buy or sell going into earnings? Read our full analysis here, it's free.
This quarter, analysts are expecting Take-Two's revenue to grow 2.7% year on year to $1.32 billion, slowing from the 16.5% increase it recorded in the same quarter last year. Adjusted earnings are expected to come in at $0.01 per share.
The majority of analysts covering the company have reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Take-Two has missed Wall Street's revenue estimates six times over the last two years.
Looking at Take-Two's peers in the video gaming segment, some have already reported their Q2 results, giving us a hint as to what we can expect. Roblox delivered year-on-year revenue growth of 31.3%, beating analysts' expectations by 1.2%, and Electronic Arts reported a revenue decline of 13.7%, topping estimates by 5.3%. Roblox traded down 6% following the results while Electronic Arts was up 1.3%.
Read our full analysis of Roblox's results here and Electronic Arts's results here.
Growth stocks have been quite volatile since the start of 2024, and while some of the video gaming stocks have fared somewhat better, they have not been spared, with share prices down 7.9% on average over the last month. Take-Two is down 8.1% during the same time and is heading into earnings with an average analyst price target of $178.8 (compared to the current share price of $137.24).
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