Earnings Update: Take-Two Interactive Software, Inc. (NASDAQ:TTWO) Just Reported And Analysts Are Boosting Their Estimates

Take-Two Interactive Software, Inc. (NASDAQ:TTWO) shareholders are probably feeling a little disappointed, since its shares fell 7.3% to US$234 in the week after its latest quarterly results. Take-Two Interactive Software beat revenue forecasts by a solid 13%, hitting US$2.0b, but it also saw a corresponding increase in statutory losses, which hit US$0.73, some -17% greater than the analysts expected. Earnings are an important time for investors, as they can track a company's performance, look at what the analysts are forecasting for next year, and see if there's been a change in sentiment towards the company. With this in mind, we've gathered the latest statutory forecasts to see what the analysts are expecting for next year.

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Taking into account the latest results, the most recent consensus for Take-Two Interactive Software from 19 analysts is for revenues of US$6.49b in 2026. If met, it would imply an okay 4.4% increase on its revenue over the past 12 months. The loss per share is expected to greatly reduce in the near future, narrowing 91% to US$1.98. Before this earnings announcement, the analysts had been modelling revenues of US$6.17b and losses of US$2.02 per share in 2026. So there seems to have been a moderate uplift in analyst sentiment with the latest consensus release, given the upgrades to both revenue and loss per share forecasts for this year.

See our latest analysis for Take-Two Interactive Software

Despite these upgrades,the analysts have not made any major changes to their price target of US$277, implying that their latest estimates don't have a long term impact on what they think the stock is worth. That's not the only conclusion we can draw from this data however, as some investors also like to consider the spread in estimates when evaluating analyst price targets. The most optimistic Take-Two Interactive Software analyst has a price target of US$316 per share, while the most pessimistic values it at US$160. There are definitely some different views on the stock, but the range of estimates is not wide enough as to imply that the situation is unforecastable, in our view.

Looking at the bigger picture now, one of the ways we can make sense of these forecasts is to see how they measure up against both past performance and industry growth estimates. It's pretty clear that there is an expectation that Take-Two Interactive Software's revenue growth will slow down substantially, with revenues to the end of 2026 expected to display 8.9% growth on an annualised basis. This is compared to a historical growth rate of 14% over the past five years. Juxtapose this against the other companies in the industry with analyst coverage, which are forecast to grow their revenues (in aggregate) 9.7% annually. Factoring in the forecast slowdown in growth, it looks like Take-Two Interactive Software is forecast to grow at about the same rate as the wider industry.

The Bottom Line

The most important thing to take away is that the analysts reconfirmed their loss per share estimates for next year. They also upgraded their revenue forecasts, although the latest estimates suggest that Take-Two Interactive Software will grow in line with the overall industry. The consensus price target held steady at US$277, with the latest estimates not enough to have an impact on their price targets.

Following on from that line of thought, we think that the long-term prospects of the business are much more relevant than next year's earnings. We have estimates - from multiple Take-Two Interactive Software analysts - going out to 2028, and you can see them free on our platform here.

You can also see whether Take-Two Interactive Software is carrying too much debt, and whether its balance sheet is healthy, for free on our platform here.

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This article by Simply Wall St is general in nature. We provide commentary based on historical data and analyst forecasts only using an unbiased methodology and our articles are not intended to be financial advice. It does not constitute a recommendation to buy or sell any stock, and does not take account of your objectives, or your financial situation. We aim to bring you long-term focused analysis driven by fundamental data. Note that our analysis may not factor in the latest price-sensitive company announcements or qualitative material. Simply Wall St has no position in any stocks mentioned.