Video game publisher Take-Two Interactive Software ( TTWO ) late Tuesday reported better-than-expected sales in the September quarter and guided to above-consensus sales for the December quarter. It also raised its sales guidance for the full fiscal year year, ending March 31.
[ibd-display-video id=2533564 width=50 float=left autostart=true]Take-Two stock rocketed 10% higher in after-hours trading on the stock market today . During the regular session, Take-Two fell 0.6% to 106.39.
Take-Two expects full-year adjusted sales of $1.98 billion, based on the midpoint of its guidance, up 4% year over year. Analysts on average were expecting $1.76 billion.
Take-Two reported non-GAAP sales of $577 million in its fiscal second quarter ended Sept. 30. Analysts were modeling for $510 million. Its results were aided by the continued success of the "Grand Theft Auto" franchise and "NBA 2K18," the latest installment of its pro basketball simulation game.
For its fiscal third quarter, Take-Two guided to non-GAAP sales of $635 million, topping expectations for $546 million.
Take-Two's strong forecast for the holiday sales quarter is in contract to the outlook offered by rivals. Activision Blizzard ( ATVI ) and Electronic Arts ( EA ) both missed Wall Street's targets with their December-quarter guidance.
Take-Two reports quarterly results using generally accepted accounting principles, or GAAP, while Wall Street uses non-GAAP figures, making initial comparisons difficult.
In the September quarter, Take-Two reported a GAAP loss of 3 cents a share. In the December quarter, it expects to lose 30 cents a share.
"Our positive momentum continued in the second quarter, enabling Take-Two to deliver another period of better-than-expected operating results," Take-Two Chief Executive Strauss Zelnick said in a news release . "'Grand Theft Auto Online' delivered its best quarter yet, net bookings from 'Grand Theft Auto 5' grew year-over-year, and we enjoyed the successful launch of 'NBA 2K18,' which generated growth in both units sold and recurrent consumer spending."