Take-Two Interactive Software TTWO is a leading developer and publisher of video games. Analysts have taken a bearish stance on the company’s outlook, landing the stock into an unfavorable Zacks Rank #5 (Strong Sell).
Image Source: Zacks Investment Research
In addition, the company currently resides in the Zacks Toys – Games – Hobbies industry, which is currently ranked in the bottom 32% of all Zacks industries. Let’s take a closer look at a few other aspects of the company.
Take-Two Interactive
TTWO shares have faced a bumpy road so far in 2024, down nearly 9% and widely underperforming relative to the S&P 500’s nearly 10% gain. Shares plunged following its latest set of quarterly results, facing regular selling pressure since.
Image Source: Zacks Investment Research
Concerning the above-mentioned release, TTWO fell short of the Zacks Consensus EPS estimate by roughly 1.4% and posted sales just a hair below expectations, reflecting declines of -41% and -3%, respectively. The company lowered FY24 guidance due to softness in mobile advertising and NBA 2K24, explaining the adverse reaction and negative earnings estimate revisions that followed post-earnings.
Nonetheless, it’s worth mentioning that the company’s video game pipeline remains bright, particularly when considering the launch of GTA VI expected in 2025. The franchise is an absolute monster in terms of sales, and that’s reflected by the company’s expected earnings growth rate of +160% for its FY25.
Bottom Line
Analysts' negative earnings estimate revisions, resulting from lowered guidance, paint a challenging picture for the company’s shares in the near term.
Take-Two Interactive Software TTWO is a Zacks Rank #5 (Strong Sell), indicating that analysts have taken a bearish stance on the company’s earnings outlook.
For those seeking strong stocks, a great idea would be to focus on stocks carrying a Zacks Rank #1 (Strong Buy) or a Zacks Rank #2 (Buy). These stocks sport a notably stronger earnings outlook and the potential to deliver explosive gains in the near term.
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