apos;Grand Theft Auto' Maker Issues Soft Year Outlook

Take-Two Interactive Software Inc. issued guidance for its new fiscal year that missed expectations, though revenue for the quarter ended in March soared, led by strong sales of games such as "Grand Theft Auto V."

The company's board also approved an increase in its stock-buyback program that permits the repurchase of as much as 10 million of Take-Two software's shares.

Shares of Take-Two have risen 27% over the past 12 months but fell 2% Monday ahead of its earnings. The stock was halted in after-hours trading.

For the year ending March 2016, the company forecast per-share earnings of 75 cents to $1 and adjusted revenue of $1.3 billion to $1.4 billion. Analysts polled by Thomson Reuters expected per-share profit of $1.28 and adjusted revenue of $1.51 billion.

For quarter ending June 30, Take-Two forecast per-share earnings of 25 cents to 35 cents and adjusted revenue of $325 million to $350 million. Analysts polled by Thomson Reuters expected profit of a penny a share and adjusted revenue of $212 million.

For the period ended March 31, Take-Two reported a loss of $242.8 million, or $2.99 a share, compared with a year-earlier loss of $30.8 million, or 40 cents a share.

Excluding deferred revenue, stock-based compensation and other items, per-share earnings rose to 49 cents from 21 cents. Excluding such items, net revenue grew 83% to $427.7 million.

The company had projected per-share profit of 15 cents to 25 cents and revenue of $410 million to $460 million. Analysts had expected per-share earnings of 27 cents on adjusted revenue of $459 million.

Write to Tess Stynes at [e-mail]

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