Digest: Take-Two up; U.S. ads slip
EmptyMixed day for Take-Two
Shares of Take-Two Interactive Software Inc. rose 5.2% on Tuesday to $16.57 a day after the company reported a smaller-than-expected loss and better sales than analysts anticipated. The company also forecast adjusted profit of $1.30-$1.50 per share for the fiscal year ending in October 2008, while analysts expected Take-Two to earn just 83 cents per share for the year. Pacific Crest analyst Evan Wilson, however, reiterated a "sector perform" rating on the stock, saying that the company is too optimistic in its prediction that its sports video game business will turn a profit in fiscal 2008. BMO Capital Markets analyst Edward Williams also maintained a "market perform" rating, saying investors should not buy the stock because of previous mistakes concerning "Manhunt 2" and the delayed launch of "Grand Theft Auto IV."
Report: U.S. ad spending slow
U.S. advertising spending is viewed as being "challenged" for the rest of the year after slipping 0.3% in the first half to $72.6 billion, according to a Tuesday report from TNS Media Intelligence. It was the first time U.S. advertising spending has fallen for two consecutive quarters since 2001, the report indicated, and reflected an overall weakness across economic sectors. Television ad spending fell 2.4% to $31.6 billion and newspaper ad spending fell 5% to $12.9 billion. Radio ad spending fell 2.7% $5.1 billion. The declines offset gains from Internet display ad spending, which rose 17.7% to $5.5 billion. Magazine ad spending rose 4% and outdoor spending rose 3.% to $1.9 billion.