'Red Dead Redemption' boosts Take-Two Q3
Video-game publisher's stock surges on quarterly resultsTake-Two Interactive Software proved on Thursday that it's more than a one-trick pony by earning a profit without having to rely on its workhorse franchise, "Grand Theft Auto."
The fiscal third-quarter results blew past the expectations of analysts, as well as the company's own guidance. The earnings news was released after the close of market trading, but investors rewarded Take-Two by bidding up shares 13% in after-hours activity.
On the strength of sales now approaching 7 million units for "Red Dead Redemption," Take-Two earned a $5.9 million profit in the quarter, reversing a $57 million loss a year ago.
Revenue more than tripled to $354 million.
The New York-based company also significantly upped its guidance, predicting a full-year profit on revenue up to $1.1 billion. It previously had forecast full-year revenue of up to $950 million.
Helping the video-game publisher exceed expectations on just about every level during the quarter and for the rest of the year are also older titles like "NBA 2K10" and "Grand Theft Auto IV," a game that's more than 2 years old already.
Executives highlighted several upcoming games they are especially excited about, including "Nickelodeon Fit," coming out for the Wii on Nov. 2 and, coming next week, an iPad version, in HD, no less, of "Grand Theft Auto: Chinatown Wars."
Take-Two shares rose $1.15 in after-hours trading to $10.01.