Take-Two Interactive Reports Mixed Earnings, Shareholders Disappointed
Investors in Take-Two Interactive Software, Inc. (NASDAQ: TTWO) are likely experiencing disillusionment, as the company’s stock plummeted by 9.5%, closing at US$232 following the release of its latest quarterly earnings.
The results were decidedly mixed; although revenues reached US$2.0 billion—exceeding expectations by 13%—the statutory losses registered at US$0.73 per share, which was 17% greater than analysts had anticipated.
Earnings reports serve as a pivotal moment for investors, acting as a gauge for a company’s performance, offering insights into future forecasts, and reflecting shifts in market sentiment.
Analysts’ updated statutory projections post-earnings for the next fiscal period may provide further clarity on these sentiments. NasdaqGS: TTWO Earnings and Revenue Growth November 9th 2025
In the wake of the earnings announcement, the consensus among 18 analysts now points to projected revenues of US$6.49 billion for 2026. This marks a modest 4.4% growth compared to the previous year.
Predictions suggest that losses are anticipated to decrease substantially, narrowing by 90% to US$2.08. However, prior forecasts had posited revenues at US$6.17 billion and losses of US$2.02 per share for the same period.
The slight uptick in revenue forecasts juxtaposed with the increase in per-share loss estimates indicates a mixed consensus regarding the future of Take-Two Interactive Software.
The consensus price target remains static at US$276, implying that the anticipated higher losses are not likely to adversely affect long-term valuation.
The consensus reflects an average of individual analyst estimates, but the variation within these targets is noteworthy.
The most optimistic analyst assigns a value of US$316, while the most pessimistic suggests US$150 per share, illustrating a considerable range of outlooks for the company’s future.
To further comprehend these forecasts, it is beneficial to contextualize them against past performance and the trends observed within the industry.
Take-Two Interactive Software’s anticipated growth appears to be slowing, with an estimated annualized growth rate of 8.9% leading up to 2026, significantly below the historical rate of 14% per annum over the last five years.
In contrast, industry counterparts forecast an aggregate revenue growth of 9.6% annually. Thus, it seems that Take-Two Interactive Software is expected to expand at a pace commensurate with the broader industry despite the forecasted deceleration.
Crucially, analysts’ revised loss per share estimates for the upcoming year merit close attention. While revenue projections have been elevated, they suggest that the company’s growth trajectory may align more closely with the industry average.
Notably, the consensus price target indicates no significant alterations in intrinsic value following these recent projections.
Considering this perspective, the long-term outlook for Take-Two Interactive Software should supersede concerns over next year’s earnings. Projections extend to 2028, and further analyses can be explored here.
For an in-depth examination of Take-Two Interactive Software’s balance sheet, including insights on debt levels, analyses are also available here.
Source link: Sg.finance.yahoo.com.
