Benzinga | Nov 4, 2020 10:04AM EST

Take-Two Interactive's Earnings Outlook

On Thursday, November 05, Take-Two Interactive (NASDAQ: TTWO) will release its latest earnings report. Check out Benzinga's preview to understand the implications.

What Are Earnings, Net Income, And Earnings Per Share?

Earnings and EPS are useful metrics of profitability. Total earnings also known as net income is equal to total revenue minus total expenses. Dividing net income by the total number of shares outstanding yields EPS.

Earnings And Revenue

Based on Take-Two Interactive management projections, analysts predict EPS of $1.48 on revenue of $853.66 million. Take-Two Interactive EPS in the same period a year ago totaled $1.93. Sales were $950.52 million.

What Are Analyst Estimates And Earnings Surprises, And Why Do They Matter?

Analysts who cover this company will publish forward-looking estimates of its revenue and EPS each quarter. Averaging together every EPS and revenue prediction that each analyst makes about a company in a quarter yields the "consensus estimates." A company posting earnings or revenue above or below the consensus estimate is known as an "earnings surprise" and may move the stock by a considerable margin.

If the company were to report earnings in line when it publishes results Thursday, earnings would be down 23.32%. Sales would be down 10.19% from the same quarter last year. Here is how the company's reported EPS has stacked up against analyst estimates in the past:

Quarter Q1 2020 Q4 2020 Q3 2020 Q2 2019EPS Estimate 1.59 0.89 1.74 1.68EPS Actual 2.30 1.50 1.75 1.93Revenue Estimate 843.94 M 582.22 M 921.52 M 925.56 MRevenue Actual 996.25 M 729.42 M 888.18 M 950.52 M

Stock Performance

Shares of Take-Two Interactive were trading at $158.88 as of November 03. Over the last 52-week period, shares are up 41.1%. Given that these returns are generally positive, long-term shareholders are probably happy going into this earnings release.

Do not be surprised to see the stock move on comments made during its conference call. Take-Two Interactive is scheduled to hold the call at 16:30:00 ET and can be accessed here.