Video game giant Take-Two Interactive (TTWO) is set to report its fiscal Q1 2022 earnings after the closing bell on Monday, with Wall Street expected to focus primarily on the performance of the company’s massive “Grand Theft Auto” franchise, and how the latest quarter compares to the same period last year.
Here’s what analysts are expecting from the firm in the quarter compared to how Take-Two performed in fiscal Q2 2021. Take-Two has been leaning heavily on its mainstay titles like “Grand Theft Auto V,” “Grand Theft Auto Online,” “Red Dead Redemption 2,” and its “NBA 2K” franchise to power its sales in last few quarters, but analysts are growing wary of the continued strength of those games going forward.
“We have seen investor sentiment turning negative on [Take-Two] in recent months,” Oppenheimer analyst Martin Yang wrote in a research report ahead of the video game maker’s earnings release. “The stock has underperformed this year (down 18% [year-to-date] vs NASDAQ’s 15% gain). The gaming industry exploded during the pandemic, as people around the world found themselves looking for any outlet while they were stuck in their homes.
The gaming sector itself is now worth $300 billion, more than both the music and movie industries combined, according to Accenture. But the availability of vaccines combined with re-openings means that comparisons between Take-Two’s fiscal 2021 and fiscal 2022 will be especially tough to swallow.
