Take-Two raises outlook after big 'Red Dead Redemption 2' launch
Take-Two Interactive Corp. raised its financial forecast for the year Wednesday while reporting better-than-expected sales ahead of an expected windfall from the release of "Red Dead Redemption 2." Take-Two had already announced that the new videogame had racked up more than $700 million in sales in its first three days of release, the second biggest launch in the company's history, which will go on the current quarter's tally. On Wednesday, it reported fiscal second-quarter revenue of $492.7 million and net bookings -- which incorporates other sales -- of $583.4 million, up from $577 million last year and above the average analyst estimate of $550 million, according to FactSet. Take-Two reported net income of $25.4 million, or 22 cents a share, after reporting a loss of 3 cents a share a year ago. "As a result of our strong second quarter performance and outstanding early results from Red Dead Redemption 2, we are raising our financial outlook for fiscal 2019, which is also poised to be a record year for Net Bookings and Adjusted Operating Cash Flow," Chief Executive Strauss Zelnick said in Wednesday's announcement. Take-Two now expects full-year net bookings of $2.8 billion to $2.9 billion, after previously stating $2.67 billion to $2.77 billion, and earnings of $1.73 a share to $1.98 a share. Take-Two shares were halted for late trading ahead of the report's release, and gained about 2% in extended trades after they began trading again at 4:30 p.m. Eastern time. Market Pulse Stories are Rapid-fire, short news bursts on stocks and markets as they move. Visit MarketWatch.com for more information on this news.