TTWO - Embedded Expectations Analysis - 2019 09 27
Take-Two Interactive Software, Inc. (TTWO:USA) is currently trading near recent averages relative to UAFRS-based (Uniform) Earnings, with a 21.3x Uniform P/E. At these levels, the market has bearish expectations for the firm, and management may be concerned about demographic trends, international growth, and guidance.Specifically, management may be concerned about the sustainability of their Red Dead franchise sales growth, and they may lack confidence in their ability to drive sales through in-game cosmetic items. Furthermore, they may lack confidence in their ability to meet their revised guidance for 2019, and they may be concerned about the demographic trends of videogame players. Finally, they may lack confidence in their ability to drive growth in China, and they may be concerned about the sustainability of player engagement they are seeing from Grand Theft Auto's newest DLC.
Take-Two Interactive Software is a developer, publisher and marketer of interactive entertainment for consumers. The company develops and publishes products principally through its two wholly-owned labels Rockstar Games and 2K, as well as its Private Division label and Social Point, a developer of mobile games. The company's products are designed for console gaming systems such as the Sony Computer Entertainment, Inc. PlayStation?4, Microsoft Corporation Xbox One?, and Xbox 360?, the Nintendo Switch, and personal computers, including smartphones and tablets. The company delivers its products through physical retail, digital download, online platforms and cloud streaming services.
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