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Video game publisher Take-Two Interactive Software ( TTWO ) late Wednesday trounced Wall Street’s targets for the December quarter, despite not having launched any big new games during the holiday shopping season. The New York-based company earned 89 cents a share excluding items on sales of $486.8 million in its fiscal third quarter, ended Dec. 31 . Analysts polled by Thomson Reuters had expected Take-Two to earn 50 cents a share ex items on sales of $452.8 million. On a year-over-year basis, earnings per share fell 67%, and sales fell 31%. Take-Two credited the sustained popularity of such games as “Grand Theft Auto 5,” “Grand Theft Auto Online,” “NBA 2K16,” “WWE 2K16” and the “Borderlands” series for its fiscal Q3 upside. Take-Two stock was up more than 4%, near 34, in afternoon trading on the stock market today . The stock hit an all-time high of 37 on Nov. 6. Take-Two has “limited near-term product momentum” because its next big game, “Battleborn,” isn’t scheduled for release until May 3, which falls in the company’s fiscal 2017 first quarter, says Baird analyst Colin Sebastian. He rates Take-Two stock as neutral, with a price target of 38. One big disappointment is the lack of a new game on the horizon from Take-Two’s Rockstar Games, Pacific Crest Securities analyst Evan Wilson said in a research note Thursday. Rockstar is the studio behind the “Grand Theft Auto” and “Red Dead” franchises. “The Street had previously been hopeful for a big Rockstar release this year (Red Dead), but that is not happening, and we still have not heard any news for next year,” Wilson said. “It has now been two years since discussion about an imminent Red Dead announcement began.” Wilson rates Take-Two stock as sector weight, with a fair value in the mid-30s. Take-Two continues to benefit from two powerful tailwinds: faster-than-expected sales of current-generation consoles and the transition to digital revenue streams, which is driving improved profitability, Jefferies analyst Brian Fitzgerald said in a note Wednesday. He rates Take-Two a buy, and he raised his price target to 48 from 44. RELATED: Everybody Into The Pool! Take-Two Joins Esports Trend . Scalper1 News
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