Is Take-Two Stock Still a Buy After Earnings?
Take-Two Interactive (NASDAQ: TTWO) delivered bookings and adjusted earnings per share that were better than the consensus analyst estimate. However, management reiterated its full-year guidance for bookings to be down 8.5% over fiscal 2021 to a range of $3.2 billion to $3.3 billion.
On top of that, management announced that the company is pushing back the release dates for two titles until later in fiscal 2022. Delays are the norm across the industry and shouldn't be a reason to sell a top video game stock. The overriding issue seems to be that investors were looking for a stronger outlook for the near term and management didn't offer that.
However, Wall Street's focus on short-term results is overshadowing the huge step up in demand Take-Two has experienced for its games over the last two years. This top game producer has reached a larger plateau of net bookings and players that it can build on to deliver market-beating returns to investors over the long term.
Source Fool.com
