Take-Two Interactive Q3 Profit Beats Estimates; Increases FY14 Outlook

(RTTNews) - Take-Two Interactive Software, Inc. (TTWO) reported third-quarter net income from continuing operations of $578.4 million, or $4.69 per share, compared to $70.9 million, or $0.66 per share, last year. Non-GAAP net income was $210.7 million, or $1.70 per share, for the quarter.

On average, 20 analysts polled by Thomson Reuters expected the company to report profit per share of $1.37 for the quarter. Analysts' estimates typically exclude special items.

GAAP net revenue increased to $1.86 billion, from $415.8 million, last year. Non-GAAP net revenue was $767.7 million, compared to $405.0 million a year-ago. Analysts expected revenue of $704.44 million, for the quarter.

Strauss Zelnick, Chairman and CEO of Take-Two, said: "Our results were driven by robust holiday demand for Grand Theft Auto V, the franchise record-breaking launch of NBA 2K14, the successful release of WWE 2K14, and strong growth in digitally-delivered revenues led by Grand Theft Auto Online."

The company increased its financial outlook for fiscal year 2014, ending March 31, 2014, and provided its initial financial outlook for fiscal fourth quarter 2014, ending March 31, 2014.

Fourth-quarter non-GAAP net revenue is expected to be in the range of $170 million to $200 million; and non-GAAP net income per share is expected in the range of $0.00 to $0.10. Analysts expect the company to report fourth-quarter profit per share of $0.13, on revenue of $219.23 million. Fiscal year 2014 non-GAAP net revenue is expected to be between $2.35 billion to $2.38 billion. Non-GAAP net income per share is anticipated to be between $4.15 to $4.25. Analysts expect the company to report fiscal 2014 profit per share of $3.80, on revenue of $2.34 billion.