Take-Two Interactive (TTWO)
Shares rallied more than 8%, about 8.5%, on earnings and the pull of GTA 6. Earnings came in at 99 cents per share, beating the 94 cents expected. Revenue reached 1.6 billion, a slight beat.
GTA 6 launches November 19th after many delays, about 13 years after the last GTA. Sensor Tower estimates more than 7.7 million pre-orders globally as of about a week ago. The standard edition costs $79.99; the Ultimate Edition about $100, which adds to the revenue chance.
Guidance: fiscal 2027 revenue of 7.98 billion to 8.18 billion, an increase at both ends. Earnings outlook now 57 to 75 cents per share, with the low end raised by 2 cents. Annual bookings guidance stays unchanged at 8 to 8.2 billion despite the pre-order strength.
On Holding (ONON)
Shares fell despite a beat. Converted to dollars, earnings were 66 cents per share versus 46 cents expected. Revenue was 1.15 billion, also a beat and up 17%. Asia Pacific sales surged 31%. Direct-to-consumer (DTC) rose about 24.8%; wholesale up 13.2%. The company raised its gross margin outlook but kept its full-year sales forecast unchanged. Investors may have wanted a bigger guidance increase. The same pattern hit last quarter - a beat followed by a sell-off.
The broader footwear and athleisure space has been weak. Nike (NKE) is a turnaround that is not gaining much traction. Deckers (DECK), the parent of Hoka, has also struggled. Over the past month On Holding ran up about 6% but gave it all back in early trade. Year to date it was down about 19% coming into the day. Cantner has a $46 overweight target; the stock sits at $35, leaving upside.
Rocket Lab (RKLB)
A mixed picture. Shares rose heading into results, so expectations were higher. The company reported a loss of 12 cents per share, worse than the 6 cents expected. Revenue beat at 267.8 million, up about 73% year over year. Rocket Lab is still not profitable, which is the main challenge.
Backlog, a sign of future business, reached 3.6 billion, up from 2.4 billion the prior quarter, an increase of about 50%. That contracted-but-undelivered work gives visibility into future revenue, but it was not enough given how strong the stock ran into the print. Over one year the stock is up 12%, though it has lost 50% in six months.
