Video-game maker Take-Two Interactive is getting slammed after missing on guidance

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Take-Two Interactive Software tanked 13% to $US93.30 a share early Tuesday after the company provided a weaker-than-expected outlook.

The video-game maker posted solid financial results for the third quarter, earning an adjusted $US2.90 a share on revenue of $US1.57 billion. Wall Street analysts were expecting adjusted earnings of $US2.80 a share on $US1.52 billion of sales.

The company also raised its outlook, saying it now sees full-year adjusted revenue in the range of $US2.89 billion to $US2.94 billion, but that fell short of the $US2.99 billion that was expected by Wall Street. Take-Two previously saw full-year adjusted revenue of $US2.8 billion to $US2.9 billion.

“Take-Two delivered better-than-expected results in the fiscal third quarter,” said CEO Strauss Zelnick in a press release.

“Our outperformance was driven primarily by the record-breaking launch of Red Dead Redemption 2 along with strong results from NBA 2K19. In addition, consumers engaged significantly with our offerings, and recurrent consumer spending grew 31% to a new record. We generated strong cash flow and ended the period with $US1.6 billion in cash and short-term investments, after deploying $US109 million to repurchase 1 million shares of our stock.”

Take-Two was down 10% this year so far.

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