Take-Two Interactive Misses Q1 Views, Shares Slip

Shares of

dropped over 3 percent in after-hours trading after the company reported weaker-than-expected results for the fiscal first quarter. The New York-based company reported a quarterly net loss of $67 million, or $0.81 per share, versus a year-ago loss of $35.4 million, or $0.45 per share. Excluding items, the company's adjusted profit came in at $0.31 per share. Its sales jumped 119 percent to $275.3 million, while revenue on an adjusted basis gained 142 percent to $366.4 million. However, analysts were estimating earnings of $0.36 per share on revenue of $351.41 million. The average estimate among 26 Estimize users was for earnings of $0.35 per share and revenue of $360.67 million. Non-GAAP net revenue from digitally-delivered content climbed 139 percent to $254.0 million for the quarter. As of June 30, 2015, Take-Two Interactive had cash and short-term investments balance of $1.191 billion, versus $1.098 billion as of March 31, 2015. "Our business continued its positive momentum during the fiscal first quarter, enabling Take-Two to deliver significant growth in revenue, Non-GAAP earnings and cash flow," said Strauss Zelnick, Chairman and CEO of Take-Two. "These results were driven by strong consumer demand for Grand Theft Auto V, NBA 2K15 and an array of other titles, along with better-than-expected growth in recurrent consumer spending." Take-Two Interactive also reaffirmed its outlook for the year. Take-Two Interactive shares fell 3.19 percent to $29.95 in the after-hours trading session.