Take-Two Interactive Software's (TTWO) potential update on the "Grand Theft Auto VI" launch date will be a key focus for investors at the video game maker's upcoming earnings call, Wedbush Securities said Friday.
The company is scheduled to release its financial results on May 21, with a conference call scheduled on the same day.
"The call itself is what matters," Wedbush analysts, including Alicia Reese, wrote in a client note. "This is the moment investors will know whether GTA VI is still on track for its Nov. 19 release."
In November last year, Take-Two Interactive and its subsidiary, Rockstar, announced a further delay to the game, setting the release date at Nov. 19 this year.
In February, the brokerage said there was a 75% probability that Take-Two will launch GTA VI in November, although its Rockstar subsidiary has a history of announcing major delays about six months ahead of the release. "If management doesn't push the date on this call, we move our odds to (greater than 90%) that November holds," Reese wrote on Friday.
Wedbush cited a leaked email from electronics retailer Best Buy (BBY) sent to its affiliate marketing partners that pre-orders for GTA VI could go live at any point next week. The exact dates could still change, while Rockstar could push the trailer and pre-order release by a week or two to "retake control of the announcement," the brokerage said.
"In either scenario, we'd expect a new trailer and pre-order announcement within the month," Reese said.
Wedbush estimates Take-Two to report fourth-quarter bookings of $1.56 billion, at the high end of the company's outlook range, with a chance to exceed expectations due to strength in mobile.
Wedbush maintained its outperform rating on Take-Two's stock and 12-month price target of $300.
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