Take-Two Results Up, But Analysts Concerns Drive Stock Down

The company's second-quarter profit jumped 58% to $15.2 million (36 cents a share), thanks largely to the continued success of Grand Theft Auto: Vice City. Sales increased 14%, to $194.2 million. The publisher also said that its president, Paul Eibeler, who took a medical leave of absence in early April, will not return to the company. Eibeler assumed the role in July 2000. Take-Two raised its guidance for the current fiscal year ending Oct. 31. The company now expects to earn about $2.28 a share on sales of $975 million, up from an earlier estimate of $2.26 a share. Despite the uptick in profit and sales, shares in the company are down $1.20 (4.5%) today. Analysts believe that the company's revenue mix is worrysome, as its publishing business contributed 65% of total sales, down from 79% last year at this time.