(Bloomberg) -- Take-Two Interactive Software Inc., the video-game maker behind Grand Theft Auto, fell as much as 5.2% in extended trading after saying several key titles will be delayed and reiterating its guidance for the current fiscal year.
- Revenue for the current, second quarter will be $815 million to $865 million on an adjusted basis, Take-Two said Monday. That’s shy of the $868.3 million average of analysts’ estimates compiled by Bloomberg. The company projects profit of $1.20 to $1.30 a share, excluding items, compared with estimates of $1.24.
- See details here.
- The game business is showing signs of weakness after a surge of play during the early phases of the coronavirus pandemic and lockdown. Recurring consumer spending fell 25% in the first quarter, Take-Two said, though that was better than an anticipated 30% decline.
- The company is delaying some games, with “two of our immersive core titles shifting to later in fiscal 2022 than our prior guidance had contemplated.” The company also described fiscal 2022 as “a year of investments,” marked by recent acquisitions.
- The guidance for the current quarter is a result of the game delays, Chief Executive Officer Strauss Zelnick said in an interview. “This is really just seeking polish” for those titles, he said.
- For the full year, Take-Two reiterated its sales forecast of $3.2 billion to $3.3 billion, a decline from fiscal 2021, and profit of $3.75 to $4 a share. Those are both below analysts’ estimates.
- First-quarter adjusted revenue of $711.4 million beat the $684.3 million average of analysts’ estimates. Adjusted earnings of $1.01 a share in the quarter ended June 30 exceeded expectations of 90 cents.
- Shares of Take-Two fell as low as $164.12 in extended trading. They were down 17% for the year through Monday’s close in New York.
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- See Take-Two estimates.
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