Take-Two Interactive Software, Inc. (NASDAQ:TTWO) released its earnings numbers for the three months through September this afternoon after the market closed on Wall Street. The company showed earnings of $2.49 per share for the quarter on revenue of $1.27 billion. Take-Two is most famous for its its game GTA V, which was released in the third quarter.
In the lead up to the release of this earnings report analysts following Take-Two Interactive Software, Inc. (NASDAQ:TTWO) were looking for earnings per share of $1.48 per share. Take Two recorded the three months through September as the second quarter of 2014. Analysts were looking for revenue of $894 million for the period.
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GTA V sales
There’s a reason that Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is recording such incredible quarterly results for the third quarter. One of the biggest games franchises out there, Grand Theft Auto, is part of its stable. The company released the latest part of the franchise, GTA V, back in September.
The company sold $800 million worth of GTA V in its first 24 hours on the market and recorded its passing of the $1 billion milestone after three days on the shelves.
GTA V sales are likely to be high over the Christmas period, and slacken off as the game ages. Take-Two is still likely to see returns from the game as it releases downloadable content and monetizes its related online multiplayer game GTA Online.
Take-Two Interactive Software, Inc. (NASDAQ:TTWO) is currently valued at more than 1300 times 2013 earnings. Though the company’s earnings are expected to be strong in 2014, but it will not be able to release a game the size of GTA V every single year. Most investors are extremely optimistic about the firm’s future, but investors who are unsure about the company’s prospects might want to avoid the risk.
Take-Two executives will host an earnings call at 4:30 PM EST this afternoon in order to discuss this earnings report. The company’s investors will want an opinion on the valuation of the stock and guidance for the second quarter of the year.