Spanish mobile game developer Social Point, which it acquired in 2017, is likely to add leverage to top-line growth, despite stiff competition from Glu Mobile (NASDAQ: GLU) and Zynga (NASDAQ: ZNGA).
However, higher expenses are likely to hinder the transfer of benefits down the line for Take-Two. Analysts expect the New York-based firm to report earnings of 2 cents per share in Q1, compared to 12 cents per share it reported last year, due to higher selling and marketing expenses, in a bid to compete with industry veterans Activision Blizzard (NASDAQ: ATVI) and Electronic Arts (NASDAQ: EA).
Apple Q3 2019 earnings call insights: iPhone takes back seat, Wearables grab the limelight
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Take-Two
is currently trading near its 12-month average price target, hence a strong
rally post earnings may not happen. The stock has an average Strong Buy rating
in the market.
On Wednesday, Electronic Arts reported better-than-expected first-quarter results, pushing the stock up 3%. EA’s top line rose 6% to $1.2 billion and net bookings declined modestly by 1% to $743 million.
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