Why Is Take-Two Interactive (TTWO) Stock Down 11% Today?
Take-Two Interactive (NASDAQ:TTWO) stock is falling on Tuesday following the release of its earnings report for its fiscal second quarter of 2023.
The bad news for the video game company starts with its earnings per share of -$1.54. That represents a massive negative shift compared to Take-Two Interactive’s earnings per share of 6 cents in the same period of the year prior.
Not helping matters is the company’s revenue of $1.4 billion. That’s nowhere close to the $1.55 billion that analysts were expecting for the quarter. Even if it’s a 62% year-over-year increase from $858.2 million.
TTWO’s Outlook Doesn’t Look Good
A guidance update from the company covers its fiscal full year of 2023. This has it expecting losses per share to range from $4.22 to $3.95 alongside revenue of $5.41 to $5.51 billion. That revenue would come in below Wall Street’s estimate of $5.89 billion for the year.
Strauss Zelnick, chairman and CEO of Take-Two Interactive, said the following about the guidance.
“We now expect to deliver Net Bookings of $5.4 to $5.5 billion in Fiscal 2023. Our reduced forecast reflects shifts in our pipeline, fluctuations in FX rates, and a more cautious view of the current macroeconomic backdrop, particularly in mobile.”
Today’s news has shares of TTWO stock seeing heavy trading. As of this writing, more than 5 million shares are on the move as investors sell. For perspective, the company’s daily average trading volume is about 1.9 million shares.
TTWO stock is down 10.6% as of Tuesday morning and is down 40.7% since the start of the year.
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On the date of publication, William White did not have (either directly or indirectly) any positions in the securities mentioned in this article. The opinions expressed in this article are those of the writer, subject to the InvestorPlace.com Publishing Guidelines.