Video-game maker Take-Two Interactive is getting slammed after missing on guidance
- Take-Two Interactive beat on both the top and bottom lines.
- It also raised its full-year outlook, but the boosted revenue guidance still fell short of Wall Street consensus.
- Watch Take-Two Interactive trade live.
Take-Two Interactive Software tanked 13% to $93.30 a share early Tuesday after the company provided a weaker-than-expected outlook.
The video-game maker posted solid financial results for the third quarter, earning an adjusted $2.90 a share on revenue of $1.57 billion. Wall Street analysts were expecting adjusted earnings of $2.80 a share on $1.52 billion of sales.The company also raised its outlook, saying it now sees full-year adjusted revenue in the range of $2.89 billion to $2.94 billion, but that fell short of the $2.99 billion that was expected by Wall Street. Take-Two previously saw full-year adjusted revenue of $2.8 billion to $2.9 billion.
"Take-Two delivered better-than-expected results in the fiscal third quarter," said CEO Strauss Zelnick in a press release.
"Our outperformance was driven primarily by the record-breaking launch of Red Dead Redemption 2 along with strong results from NBA 2K19. In addition, consumers engaged significantly with our offerings, and recurrent consumer spending grew 31% to a new record. We generated strong cash flow and ended the period with $1.6 billion in cash and short-term investments, after deploying $109 million to repurchase 1 million shares of our stock."
Take-Two was down 10% this year so far.