Though TTWO stock was previously undervalued, its quarterly results have driven its share price up 5% in the last two weeks. Take-Two announced its fiscal 2019 fourth-quarter results (for the year that ended in March) on May 13 and reported revenue of $539 million on adjusted EPS of $0.78.
Take-Two sales rose almost 20% year-over-year, while its EPS rose 11.4% in the fourth quarter.
TTWO beat Wall Street estimates
Wall Street analysts expected Take-Two to post sales of $506 million on EPS of $0.75 in the fourth quarter. While Take-Two beat sales estimates by 6.5%, it beat EPS estimates by 4% in the fourth quarter.
TTWO stock has consistently beaten Wall Street’s earnings estimates. Though it reported earnings that were higher than analysts’ estimates, its stock fell close to 11% in 2018 and has risen just 2% in 2019. Last year, gaming stocks were negatively affected by the blockbuster successes of Fortnite and PlayerUnknown’s Battlegrounds.
Shares of Electronic Arts (EA), Activision Blizzard (ATVI), and Zynga (ZNGA) generated returns of -26.5%, -29% and -1%, respectively, in 2018. Despite the recent rally, TTWO stock is still trading 25% below its 52-week high of $105.02.