Take-Two Interactive FY 2023 Q1: Analysts lower price target

On August 8, 2022 the Take-Two Interactive Software (TTWO) company published the report for the first quarter of 2023 financial year. Take-Two owns popular game franchises such as Red Dead, Grand Theft Auto (GTA) and Civilization. The report fell short of analysts’ expectations. After the publication of the report, the shares fell from $126 to $115. On August 9, stock prices recovered to $120. Take-Two Interactive posted a net loss of $104 million versus $152.3 million in net income a year earlier.

Take-Two Interactive First Quarter Fiscal Year 2023

• – Earnings per share: -$0.76/ ($0.87 forecast)
• – Revenue: $1.1B ($1.11B forecast)

The company in the current quarter plans to receive orders in the amount of $ 1.5 to $ 1.55 billion (analysts predicted $ 1.73 billion). In fiscal 2023, Take-Two expects to receive $5.8 billion to $5.9 billion in orders, lower than analysts’ forecasts of $6.4 billion. Zynga’s 39-day results were included in the current report. Take-Two completed the acquisition of online game developer Zynga on May 23.

In 2022, many gaming companies are facing falling sales and downgrading forecasts. These companies include SONY, Xbox Microsoft, Electronic Arts and Nvidia. For example, Nvidia told investors in a preliminary report that gaming revenue fell 33% in a year. The entire video game sector shows weaker financial results compared to last year. There are also problems with game console supply chains and rising inflation this year. High inflation is forcing consumers to skimp on video games and entertainment. Price targets for Take-Two shares were lowered by analyst firms Credit Suisse, Baird and Morgan Stanley.