Take-Two Interactive Software (TTWO 86.51, +7.12) has surged 9.0% after its revenue beat and increased guidance for the full year overshadowed a bottom-line miss.
The video game publisher and distributor reported below-consensus first quarter earnings of $0.56 per share on a 27.8% year-over-year jump in revenue to $348.30 million, which easily exceeded expectations.
Grand Theft Auto V and Grand Theft Auto Online remained among the company's biggest contributors to revenue nearly four years after the title was first launched for Playstation 3 and Xbox 360. Other top contributors to revenue included, NBA 2K17, WWE 2K17 and WWE SuperCard, and Mafia III.
Like other software companies, Take-Two has been taking in a growing share of total revenue through online channels. Digitally-delivered revenue jumped 56.0% year-over-year to $268.20 million while recurrent consumer spending on items like virtual currency, downloadable add-on content, and microtransactions spiked 72.0% year-over-year and made up 63.0% of digitally-delivered net revenue.
Net sales from recurrent consumer spending made up 58.0% of total net sales.
Looking ahead, the company increased its expectations for full year sales, priming the market for revenue between $1.65 billion and $1.75 billion. Earnings for the full year are expected between $1.00 per share and $1.25 per share. For the second quarter, the company expects earnings between $0.15 per share and $0.25 per share on revenue between $465.00 million to $515.00 million.
It is worth noting that the company's highly-anticipated release of Red Dead Redemption 2 is not scheduled to take place until fiscal year 2018.