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Investing.com-- Take-Two Interactive Software (NASDAQ:TTWO) shares jumped more than 6% after the video game publisher reiterated its full-year guidance and outlined plans for major game releases, despite missing analyst estimates for the third quarter.
The company reported Q3 net bookings of $1.37 billion, within its guidance range but slightly below the consensus estimate of $1.39 billion. Adjusted earnings per share (EPS) came in at -$0.71, significantly lower than the $0.59 analysts expected.
However, Take-Two maintained its fiscal year 2025 net bookings forecast of $5.55 billion to $5.65 billion, citing strong performance from NBA 2K25 and upcoming high-profile game launches.
The company plans to release Sid Meier’s Civilization VII, Mafia: The Old Country, Grand Theft Auto VI, and Borderlands 4 in the coming year. The highly anticipated GTA VI is set to launch in the fall of 2025.
"This calendar year is shaping up to be one of the strongest ever for Take-Two," said CEO Strauss Zelnick. He expressed confidence in achieving record net bookings levels in fiscal years 2026 and 2027.
BMO Capital Markets analyst Brian J. Pitz reiterated an Outperform and Top Pick ratings on TTWO shares, highlighting the confirmed plans of a GTA VI release as a key factor.
"Many investors have remained on the sideline, waiting for a GTA VI delay to put pressure on shares," Pitz wrote. We see the positive after-hours move in TTWO as attributable to the confirmation of GTA VI’s Fall 2025 launch date and believe investors need to own the stock now."
For Q3, net bookings from recurrent consumer spending grew 9% YoY, accounting for 79% of total net bookings. The largest contributors included NBA 2K25, Grand Theft Auto Online, and mobile titles like Toon Blast and Match Factory.
Take-Two expects Q4 revenue between $1.519 billion and $1.619 billion, with EPS ranging from -$0.20 to $0.13. The company’s full-year EPS guidance of -$4.50 to -$4.17 falls below analyst expectations of $2.47.