Take-Two handily beat Street estimates reporting Q2 EPS of -44c vs. the Street estimate of -59c and sales of $135.4 million vs. the Street estimate of $110.92 million. The company raised guidance for the full fiscal year to EPS of $1.05-1.30 vs. the Street estimate of $1.05.
The company cited stronger than expected catalog sales. On the earnings conference call company management noted NBA 2K15 had franchise record sell-in and sell-through sales for its first week. Moreover Grand Theft Auto Online was the largest contributor of digital revenue. Take-Two also received $22 million in cash from its successful venture investment in Twitch, which was acquired by Amazon for $970 million last month.
The CEO emphatically called out the “massive” success of the Red Dead franchise developed by Rockstar. It doesn’t take a rocket scientist to figure out a sequel to Red Dead is well into development.