If you’re interested in application software, today is a big day for you! On Thursday, August 3, video game maker Take-Two Interactive Software Inc. (NASDAQ:$TTWO) saw its shares increase. Why? It all started after the company reported impressive Q1 results.
As of 10:55 a.m. EDT, Take-Two Interactive stock was up 11%.
What Does This Mean?
Take-Two Interactive – the maker of Grand Theft Auto – increased its 2017 guidance, and posted strong growth on both the top and bottom lines. Further, net sales grew 28% in the period to $348.3 million. This surpassed estimates of $281.4 million. In terms of digitally delivered net revenue, this increased 56% to $268.2 million. Additionally, recurrent consumer spending grew 72%.
Meanwhile, EPS flipped from a loss of $0.46 in 2016 to $0.57, which surpassed estimates of $0.40. What caused the flip? Many speculate that performance was increased by games like Grand Theft Auto V and NKBA 2K17. Not only that, but gross margin also increased.
According to CEO Strauss Zelnick, “Fiscal 2018 is off to an excellent start, with our business’s positive momentum continuing to exceed our expectations in the first quarter.”
What Does the Future Hold?
Moving forward, Take-Two Interactive has decided to increase its full-year net sales expectations from $1.42 billion-$1.52 billion to $1.65 billion-$1.75 billion. This was ahead of the analysts forecast of $1.54 billion. Based on what Zelnick said, strong growth should continue throughout fiscal 2019 as the company is scheduled to launch Red Dead Redemption 2.
To end, it’s worth mentioning that Take-Two Interactive is up more than 300% over the last three years.
Featured Image: depositphotos/guteksk7
