Take-Two Interactive Software, Inc. (NASDAQ: TTWO) reported a 39% jump in GAAP revenues to $540.5 million in the first quarter of 2020. Net Bookings went up 46% to $422.2 million, surpassing Wall Street consensus of $363.8 million.
The top-line was driven by the success of its popular titles NBA 2K19, Grand Theft Auto Online, and Grand Theft Auto V, as well as Red Dead Redemption 2.
Digitally-delivered GAAP net revenue grew 36% to $427.8 million in Q1.
Net income meanwhile fell to 41 cents per share vs. 62 cents per share last year, due to higher selling and marketing expenses. On an adjusted basis, EPS was 27 cents, vs 2 cents projected by the street.
TTWO shares gained 6% following the earnings announcement. The stock has gained 11% following the earnings announcement. Earlier today, all gaming stocks including Take-Two took a hit after President Donald Trump blamed violent games for the back-to-back mass shootings witnessed by the country.
For the second quarter, revenues are forecasted in the range of $855 million to $905 million, which came in well above the estimate of $853.36 million. For this period, net income is expected between $1.04 and $1.14, while Net Bookings are expected to range from $860 to $910 million.
For the full year, the company raised its revenue expectation to between $2.83 billion – $2.93 billion, which is better than $2.65 billion expected by the street. For the full year, net bookings are expected in the range of $2.6 to $2.7 billion. EPS for 2020 is projected in the range from $3.71 to $3.96.
Last week, Electronic Arts (NASDAQ: EA) 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.