Take-Two (TTWO) Q1 Earnings Report Preview: What To Look For

Video game publisher Take Two (NASDAQ: TTWO) will be reporting earnings tomorrow after market hours. Here’s what investors should know.

Take-Two missed analysts’ revenue expectations by 2.1% last quarter, reporting revenues of $1.36 billion, flat year on year. It was a slower quarter for the company, with full-year EBITDA guidance missing analysts’ expectations.

Is Take-Two a buy or sell going into earnings? Read our full analysis here, it’s free.

This quarter, analysts are expecting Take-Two’s revenue to grow 12.1% year on year to $1.57 billion, a reversal from the 3.2% decrease it recorded in the same quarter last year. Adjusted earnings are expected to come in at $1.09 per share.

Analysts covering the company have generally reconfirmed their estimates over the last 30 days, suggesting they anticipate the business to stay the course heading into earnings. Take-Two has missed Wall Street’s revenue estimates four times over the last two years.

Looking at Take-Two’s peers in the video gaming segment, some have already reported their Q1 results, giving us a hint as to what we can expect. Electronic Arts delivered year-on-year revenue growth of 6.5%, beating analysts’ expectations by 7.6%, and Roblox reported revenues up 29.2%, topping estimates by 3.3%. Electronic Arts’s stock price was unchanged after the results, while Roblox was up 10.6%.

Read our full analysis of Electronic Arts’s results here and Roblox’s results here.

There has been positive sentiment among investors in the video gaming segment, with share prices up 22.2% on average over the last month. Take-Two is up 5.2% during the same time and is heading into earnings with an average analyst price target of $223.96 (compared to the current share price of $225.68).

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