Take-Two Interactive Software, Inc. TTWO experienced a decline in shares after unveiling its third-quarter financial results post the Thursday bell.
Financial Downturn:
The company’s third-quarter total net bookings were reported at $1.34 billion, a 3% drop compared to the previous year. The GAAP net revenue also decreased by 3% to $1.37 billion, resulting in a GAAP loss per share of 54 cents.
Additionally, Take-Two revised its 2024 net bookings projection downwards to between $5.25 billion and $5.3 billion, from their earlier forecast of $5.45 billion to $5.55 billion.
Despite the decrease, Roth MKM analyst Eric Handler maintained Take-Two Interactive with a Buy rating and raised the price target from $168 to $185. Wedbush analyst Nick McKay also reiterated an Outperform buy rating on the stock, maintaining a $190 price target following the earnings report.
Subsequently, Take-Two shares experienced a heavy volume decline as investors absorbed the report. As per Benzinga Pro data, the session saw over 5.59 million shares traded, compared to the stock’s 100-day average volume of 1.894 million shares.
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Is TTWO A Good Stock To Buy:
When considering a stock purchase, investors typically examine key fundamentals. One crucial factor is revenue growth, as buying a stock implies a belief that the company will continue to grow and generate profits. Take-Two Interactive TTWO has reported an average annual revenue growth of 19.5% over the past 5 years.
Valuation is also important. Take-Two Interactive currently boasts a forward P/E ratio of 24.39, indicating an investment of $24.39 for each dollar of expected earnings in the future. Notably, the average forward P/E ratio of Take-Two’s peers stands at 26.6.
Other critical metrics to consider include a company’s profitability, balance sheet, performance relative to a benchmark index, and valuation compared to peers.
TTWO Price Action: As per Benzinga Pro, Take-Two Interactive shares currently exhibit an over 8% downturn at $155.88 at the time of publication.
Image: Grace Baker from Pixabay
