Video game publisher Take-Two Interactive (NASDAQ:TTWO) slid in pre-market trading after the company lowered its guidance for FY24. Take-Two estimates EBITDA of between $313 and $334 million and net bookings in the range of $5.25 billion to $5.3 billion. The net bookings figure was lower than its prior forecast of between $5.45 billion and $5.55 billion.
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The company expects FY24 revenues in the range of $5.27 billion to $5.3 billion. In the fourth quarter, TTWO has projected revenues between $1.32 billion and $1.37 billion, while adjusted EBITDA is likely to range from $33 million to $55 million.
Net bookings in the fourth quarter are projected between $1.27 billion and $1.32 billion, again falling below analysts’ expectations of $1.51 billion. The company defines net bookings as the total value of products and services sold either digitally or physically during the quarter. This includes licensing fees, merchandise, and in-game advertising.
In the Fiscal third quarter, TTWO’s revenues declined by 3% year-over-year to $1.37 billion, above consensus estimates of 1.34 billion. The company’s losses narrowed to $0.54 per share in the third quarter from a loss of $0.91 per share in the same period last year. Analysts were expecting TTWO to report earnings of $0.72 per share.
Is Take-Two a Buy or Sell?
Analysts remain bullish about TTWO stock with a Strong Buy consensus rating based on 18 Buys and three Holds. TTWO has surged by more than 50% over the past year, and the average TTWO price target of $179.57 implies an upside potential of 5.88% at current levels.
