After the close today, Take-Two Interactive Software marched into the earnings confessional to reveal that it has cut its net losses for the fiscal third quarter. The video game designer suffered a loss of $58.5 million, or 81 cents per share, compared to its year-ago loss of $91.4 million, or $1.29 per share. Excluding charges related to asset write-offs, restructuring and legal probes, the company said the net loss would have been $46.1 million, or 64 cents per share. Sales during the 3-month period slipped 14% to $206.4 million. The Street had forecast a loss of 80 cents per share on revenue of $200.6 million.
In electronic trading, the shares are up more than 6% after tacking on roughly 2.2% during the regular session. The security is attempting to bounce back from its August 16 low of 11.82, and has moved back above its 10-day and 20-day moving averages. However, the stock is facing resistance in the form of its declining 10-week moving average near the 16 level. TTWO has not closed a week above this trendline since late July.
Heading into the earnings report, options players were relatively optimistic. The stock's Schaeffer's put/call open interest ratio has drifted lower to 1.69, which is lower than 83% of all those taken during the past 52 weeks. Peak call open interest in the September series rest at the deep-out-of-the-money 20 strike with more than 24,000 contracts. This leaves the shares a little room to run higher before potentially encountering options-related resistance.