Take-Two Interactive shares rally 4% as strong earnings offset delay in release of new video game
Shares of "Grand Auto Theft" maker Take-Two Interactive Software Inc. rallied 4% Tuesday, after better-than-expected earnings offset the bad news of a delay in the release of a much-anticipated new video game. "Although we are disappointed Red Dead Redemption 2 is getting pushed out to FY19, we are pleasantly surprised to see an EPS guidance for FY18 that looks to be about $1.40-$1.65, which is what we had thought management would use for its initial view with RDR2," MKM Partners analyst Eric Handler wrote in a note. MKM rates Take-Two as buy, with a stock price target of $80, equal to 11% above current trading levels. Handler welcomed the company's bigger-than-expected revenue for its fiscal fourth quarter. Take-Two shares have gained 46% in 2017, while the S&P 500 has gained 7%.
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