On Monday, Take-Two Interactive reported a strong first-quarter that easily beat analysts’ expectations. The video game company reported a fiscal first quarter record in GAAP net revenue, thanks in part to its Grand Theft Auto franchise, NBA 2K20 and Social Point’s mobile offerings, among others. Take-Two also increased its outlook for the fiscal year 2021. Myles Udland breaks down the company’s quarterly results on The Final Round.

Video Transcript

SEANA SMITH: Let's get to some breaking news that we have after hours. Take-Two is out with earning. Myles Udland has the numbers for us. Myles.

MYLES UDLAND: Yeah, Seana, the stock was halted here ahead of the numbers, and they are very good, as you would expect for the video-game maker. Take-Two reporting adjusted revenue-- or, excuse me, adjusted earnings per share $2.30. The Street was looking for $1.60. Revenue, $996 million in the quarter, well north of the 847 that the Street was looking for.

The company also raised its outlook for the current quarter and for its full year. For the full year, it know sees revenues coming in $2.8 to $2.9 billion. Previously had been looking for 2 and 1/2, 2.55 to 2.65. So a couple hundred million dollars tacked on to the company's full-year revenue outlook there.

Full-year adjusted earnings per share now between $4.05 and $4.30. Previously, the company had been looking for $3 to $3.25. So basically $1 per share increase roughly in its full-year earnings.

And so the stock, again, halted right now. You can always ask the SEC to halt your stock, so presumably they did that ahead of this release. Very good numbers.

Not a huge surprise. Pure COVID play. People have nothing to do. Kids are home. They're certainly not going to school for eight hours a day. Camps have been cancelled. So video-game makers, huge winners here. The company talking a lot about their pipeline. A number of their big sports games coming up for the 2K20-- I guess it's the 2K21 season coming up here in just a few months. Again, Take-Two with a big blowout quarter though, Seana.

SEANA SMITH: Yeah. Again, we'll keep an eye on this as soon as it resumes trading here in after hours. But, Myles, like you said, it's been a clear winner over the last several months with shares up just over 35% since January 1.