Take-Two Interactive Software Inc. reported Thursday its first profit in more than two years and beat Wall Street's expectations as revenue doubled on stronger sales of its popular Grand Theft Auto IV.
Second-quarter net income of $98.2 million, or $1.29 a share, compares with a loss of $51.2 million, or 71 cents, a year earlier, the video game publisher said in a statement today.
Sales more than doubled to $539.8 million, surpassing the $499.1 million predicted by analysts.
Excluding charges related to stock options and other items, the company said it would have earned $115.4 million, or $1.52 per share, for the recent quarter. Analysts on Wall Street had been expecting earnings of $1.13 for the quarter, according to consensus estimates from Thomson Reuters.
We always knew GTA IV would be a triumph, and its success has blown away not only our own expectations but those of its millions of fans as well, Take-Two CEO Strauss Zelnick said on a conference call with analysts.
Take-Two is currently the target of a $2 billion takeover bid by Electronic Arts Inc.
The company released Grand Theft Auto IV on April 29, just two days before the end of the quarter and sold more than 3 million units on the first day alone. As of May 31, the video publisher said about 8.5 million units of the game have already been sold.
Looking ahead, Take-Two said it now expects revenue between $325 million and $375 million for the quarter ending July 31, with earnings expected to come in between 45 cents and 55 cents a share.
According to forecasts, analysts had been expecting earnings of 32 cents a share on revenue of $322.3 million.
Take-Two shares rose 5 cents to $27.70 in after-hours electronic trading. The stock earlier closed regular trading up 34 cents at $27.65, a 52-week high.