Analyst Note| Neil Macker, CFA |
Take-Two reported a strong fiscal 2021 second quarter as revenue and EBITDA handily beat FactSet consensus expectations. Results were driven by stronger-than-expected digital performance as core titles like NBA 2K and Red Dead benefited once again from gamers staying at home due to the pandemic. Management updated its fiscal 2021 guidance with net bookings now expected to be up 5%-9% year over year despite the company not releasing any new major, nonannualized titles in the coming year. We are maintaining our narrow moat rating and expect to modestly raise our $148 fair value estimate due to a stronger fiscal 2021 and improved margin expansion from the higher-than-expected digital uptake.