Take-Two Interactive Software Inc. (NASDAQ:TTWO) surprised the Street on Thursday, posting third-quarter results that blew analyst expectations out of the water. The company also lifted its forecast for the current year and fiscal fourth quarter, crediting its improved results to the “strong performance” of its game Red Dead Redemption.

The gaming company boosted its fourth-quarter forecast to earnings in the range of 20 to 30 cents a share on revenue between $270 million and $320 million. Previously the company had expected a loss in the range of 10 to 20 cents a share on revenue between $200 million and $250 million, while the Street was predicting a loss of 11 cents a share during the fiscal fourth-quarter, with revenue coming in at $243.63 million.

Full-year projections also got a boost to adjusted earnings of 20 to 30 cents a share on revenue between $1.05 billion and $1.1 billion, topping expectations for a loss of 12 cents on revenue of $969.53 million.

For the third quarter, the company reported profit of $5.9 million or 7 cents a share, up from last year’s loss of $56.5 million or 73 cents a share, one year ago.

Revenue soared to $354.1 million, up from $94.9 million in the year-ago quarter.

The results handily beat expectations as analysts polled by Thomson Reuters had predicted a third-quarter loss of 9 cents a share on revenue of $294.67 million.

Gross margin also improved to 32.1%, compared with 19% in the third quarter of last year.

"Our strategic focus on producing a select number of high quality titles, diversifying our product portfolio, and capitalizing on new revenue opportunities has enabled Take-Two to deliver significant growth and profitability in the third quarter and positioned the Company for a strong finish to the fiscal year,” said Strauss Zelnick, chairman of Take-Two, in a statement. “At a time when the interactive entertainment industry has continued to feel the impact of an uncertain economy, the exceptional response to Red Dead Redemption shows the value of compelling content and its power to capture consumer interest.”

Shares of Take-Two rose 29 cents or 3.39% in Thursday’s session, to close at $8.85 a share. The stock rallied another $1.14 or 12.88% in after-hours trading to nearly $10.00 a share.