Take-Two beats Q4 estimates, says it's experiencing ‘heightened levels of engagement’

Take-Two Interactive Software beat on both its top and bottom lines on its fourth-quarter earnings report released after hours on Wednesday. The software company announced that it was still seeing ‘heightened levels of engagement’ even though 2021 will see a lighter release of products. Yahoo Finance’s Jared Blikre breaks down the software company’s earnings report on The Final Round.

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MYLES UDLAND: Let's go to Jared Blikre now for a little bit more on some after hours earnings. Jared.

JARED BLIKRE: Yeah, we got Take-Two software out with their earnings. And that's a beat on both the top and bottom lines. Nice BIS, by the way. Fourth quarter gap revenue coming in at $729 million versus estimates of $582 million, and the adjusted EPS coming in at $1.50. Estimate was for only $0.90.

And this has been driven by NBA 2000 and some other games, not any big releases this year. This is going to be kind of a late release. Red Dead 2 was a tough act to follow. That was a high watermark. But Take-Two is saying its creative talent continues to work on game development from home amid COVID-19.

And while remote working adds complexity and challenges in some areas, the management currently does not expect any delays, other than what has already been announced. They're also saying they continue to experience heightened levels of engagement and that bookings' growth to date kind of expected, given the situation that we're in.

And then finally saying, just kind of circling the wagons here, fiscal 2021 will be a light new release year. But they're expecting to have an array of titles in 2021-- excuse me, 2022-- that we will begin to launch in fiscal that year.

Looking at the stock, it's up about 2% right now. It had been up as much as 4%. It was just released for trading about 10 minutes ago. And I'd also note that Activision and EA shares are also climbing on its guidance, which I'm seeing as a little bit mixed right now.

First quarter adjusted revenues coming in better than expectations, $800 to $850 million. That's versus $506 million expected. But the full year 2021 EPS is a little bit light. They're expecting $3 to $3.25 when the expectations were for $4.33.