Take-Two Interactive Software, Inc. (TTWO) is Attracting Investor Attention: Here is What You Should Know

Core Viewpoint - Take-Two Interactive (TTWO) has been experiencing fluctuations in stock performance, with recent earnings estimates and revenue growth forecasts indicating potential for improvement in the near term [1][2][10]. Earnings Estimate Revisions - For the current quarter, Take-Two is expected to report earnings of $0.91 per share, reflecting a year-over-year increase of +37.9% and a +10% change in the Zacks Consensus Estimate over the last 30 days [5]. - The consensus earnings estimate for the current fiscal year stands at $2.86, indicating a year-over-year change of +39.5%, with a +4.7% adjustment in the last month [5]. - For the next fiscal year, the consensus estimate is $9.2, representing a significant increase of +221.5% compared to the previous year, with a slight change of +0.2% recently [6]. Revenue Growth Forecast - The consensus sales estimate for the current quarter is $1.74 billion, indicating a year-over-year growth of +17.7% [10]. - For the current fiscal year, the revenue estimate is $6.11 billion, reflecting an increase of +8.1%, while the next fiscal year's estimate of $9.25 billion shows a growth of +51.5% [10]. Last Reported Results and Surprise History - In the last reported quarter, Take-Two achieved revenues of $1.42 billion, marking a year-over-year increase of +16.8%, and an EPS of $0.61 compared to $0.05 a year ago [11]. - The company exceeded the Zacks Consensus Estimate for revenues by +10.71% and for EPS by +125.93% [11]. - Take-Two has consistently beaten consensus EPS estimates in the last four quarters and has surpassed revenue estimates three times during this period [12]. Valuation - Take-Two is currently graded F on the Zacks Value Style Score, indicating that it is trading at a premium compared to its peers [16]. - Valuation multiples such as price-to-earnings (P/E), price-to-sales (P/S), and price-to-cash flow (P/CF) are essential for assessing whether the stock is overvalued, fairly valued, or undervalued [14][16]. Conclusion - The Zacks Rank 1 designation suggests that Take-Two may outperform the broader market in the near term, despite its current premium valuation [17].