Take-Two Interactive Set to Report Q4 Earnings Amid Market Volatility
Take-Two Interactive Software (NASDAQ: TTWO), the publisher behind blockbuster franchises like Grand Theft Auto and NBA 2K, will announce its fiscal fourth-quarter financial results after the closing bell on Tuesday. The report comes at a pivotal moment for the video game industry, which has faced headwinds from macroeconomic uncertainty and shifting consumer spending patterns.
In the previous quarter, Take-Two delivered a robust performance, surpassing revenue expectations by 3.8% with sales of $1.77 billion—a 31.1% year-over-year increase. The company also provided forward earnings guidance that exceeded analyst projections, alongside a significant beat on EBITDA estimates.
For the quarter ending March 2025, Wall Street anticipates revenue of approximately $1.58 billion, representing a 16.2% increase compared to the flat growth seen in the year-ago period. Adjusted earnings are forecasted at $0.83 per share. Analyst estimates have remained largely unchanged over the past month, indicating consensus that the company is tracking in line with expectations. Notably, Take-Two has exceeded revenue estimates in seven of the past eight quarters, with an average beat of 3.2%.
The broader consumer internet sector offers a mixed backdrop. Meta Platforms reported strong results with revenue up 23.8% year-over-year, while Netflix posted a 17.6% increase. However, the segment has struggled overall, with share prices for consumer internet stocks falling an average of 8.9% over the last month amid concerns over potential tariff policies and corporate tax reforms. Take-Two's stock has declined roughly 14.2% over the same period, trading at $220.25 against an average analyst price target of $278.23.
"The market is pricing in a lot of caution, but Take-Two's portfolio has historically been recession-resistant," said David Chen, a portfolio manager at Horizon Capital. "A strong beat on guidance for GTA VI's upcoming launch window could reignite momentum."
In contrast, Maya Rodriguez, an independent market analyst, struck a more critical tone: "This is a company trading on hype and legacy IP. Their recent operational efficiency has been questionable, and the stock's underperformance reflects real concerns about execution beyond their one megahit franchise. Investors should be skeptical of any management optimism."
Alex Finch, a longtime retail investor and gaming enthusiast, added: "As a player, I see the engagement. But as a shareholder, I'm worried about development delays and rising costs. Tomorrow's call needs to address the pipeline beyond 2025."
Eyes will also be on any updates regarding the highly anticipated Grand Theft Auto VI, currently slated for a Fall 2025 release, and the performance of recent titles like NBA 2K25. The company's ability to navigate a challenging economic climate while investing in its future lineup will likely define the post-earnings narrative.