Shares of Take-Two (NASDAQ:TTWO) fell in after-hours trading after the company reported earnings for its third quarter of Fiscal Year 2023. Earnings per share came in at -$0.91, which missed analysts’ consensus estimate of -$0.84 per share. Sales increased by 56.1% year-over-year, with revenue hitting $1.41 billion. This missed analysts’ expectations of $1.45 billion.
While net bookings at Take-Two were up 60%, reaching $1.38 billion, consensus estimates looked for a gain of closer to 68%. That would have put net bookings at $1.45 billion. Recurrent consumer spending, which was up 104%, accounted for 79% of Take-Two’s net revenue. It also prepared a cost-cutting program designed to recover $50 million annually.
Looking forward, management now expects revenue for Fiscal Year 2023 to be in the range of $5.24 billion to $5.29 billion. For reference, analysts were expecting $5.45 billion in revenue.
Overall, Wall Street has a consensus price target of $133.20 on TTWO stock, implying 26.18% upside potential, as indicated by the graphic above.
