Shares of Take-Two Interactive Software (TTWO) tumbled 5.36% in pre-market trading on Friday, as investors reacted to the company's disappointing forward guidance despite a top-line beat in its latest quarterly results.
The video game publisher reported first-quarter revenue of $1.53 billion, surpassing the consensus estimate of $1.41 billion, while posting a narrower-than-expected loss of $0.18 per share. However, the stock came under heavy selling pressure after the company issued a weak outlook for the second quarter. Take-Two guided for Q2 revenue in the range of $1.42 billion to $1.47 billion, significantly below the IBES estimate of $1.719 billion. The company also projected Q2 net bookings between $1.62 billion and $1.67 billion, and an adjusted loss of $0.84 to $0.75 per share.
The sharp guidance cut overshadowed the company's reaffirmed full-year net bookings outlook of $8.0 billion to $8.2 billion, as traders focused on the near-term headwinds reflected in the Q2 forecast.