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Take-Two Gears Up to Report Q3 Earnings: What's in the Cards?

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Take-Two Interactive Software (TTWO - Free Report) is set to report third-quarter fiscal 2025 results on Feb. 6.

Find the latest EPS estimates and surprises on Zacks Earnings Calendar.

For the third quarter of fiscal 2025, Take-Two expects GAAP net revenues between $1.36 billion and $1.41 billion. It anticipates a GAAP net loss per share of $1.01-$1.15.

The Zacks Consensus Estimate for TTWO’s fiscal third-quarter revenues is pegged at $1.38 billion, indicating growth of 3.37% on a year-over-year basis.

The consensus mark for earnings is currently pegged at 57 cents per share, down by a penny over the past seven days, and indicating a year-over-year decline of 19.72%.

TTWO beat the Zacks Consensus Estimate for earnings in three of the trailing four quarters and missed once, the average surprise being 199.65%.

Let’s see how things have shaped up for this announcement.

Factors to Consider

TTWO’s fiscal third-quarter performance is expected to have benefited from the robust performance of its flagship franchises. Grand Theft Auto V has been exceeding expectations, while Red Dead Redemption 2 remains a bestseller, ranking in the top 10 six years post-release. NBA 2K25 has been achieving exceptional ratings, showcasing TTWO’s ability to innovate and engage audiences.

Mobile gaming is also expected to have significantly contributed to TTWO’s top-line growth in the to-be-reported quarter, driven by popular Zynga titles like Game of Thrones: Legends, Star Wars: Hunters, Match Factory! and FarmVille, and strong monetization efforts in hyper-casual gaming.

However, stiff competition from the industry giants like Electronic Arts and Activision is expected to have hurt TTWO’s fiscal third-quarter results. Macroeconomic uncertainties and sensitivity in consumer spending, particularly in mobile gaming and recurrent revenue streams, are also expected to have negatively impacted TTWO’s top-line growth.

TTWO has also been facing headwinds in its advertising segment, with a massive 30.1% decline in advertising revenues in the second quarter of fiscal 2025. This trend is expected to have continued in the to-be-reported quarter.

TTWO’s fiscal third-quarter operating expenses are also expected to grow due to increased marketing for Match Factory! and the acquisition of Gearbox Entertainment. In the second quarter of fiscal 2025, operating expenses increased 6.88% to $1.03 billion.

What Our Model Says

Per the Zacks model, the combination of a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) increases the odds of an earnings beat. But that’s not the case here.

Take-Two Interactive Software has an Earnings ESP of -20.47% and a Zacks Rank #4 (Sell) at present. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Stocks to Consider

Here are a few other companies worth considering, as our model shows that these have the right combination of elements to beat on earnings in their upcoming releases:

Akamai Technologies (AKAM - Free Report) currently has an Earnings ESP of +0.09% and a Zacks Rank #2. You can see the complete list of today’s Zacks #1 Rank stocks here.

Akamai Technologies shares have lost 21.3% in the trailing 12 months. AKAM is set to report its fourth-quarter 2024 results on Feb. 20.

AMETEK (AME - Free Report) presently has an Earnings ESP of +0.54% and a Zacks Rank #2.

AMETEK shares have gained 10.3% in the trailing 12 months. AME is set to report its fourth-quarter 2024 results on Feb. 4.

DoorDash (DASH - Free Report) has an Earnings ESP of +22.50% and a Zacks Rank #2.

DoorDash shares have appreciated 76.6% in the trailing 12 months. DASH is set to report its fourth-quarter 2024 results on Feb. 11.

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