Deutsche Suspends Price Target on THQ Inc. (THQI) & Slashes Estimates Due to New Outlook
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Price: $0.31 --0%
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 13 | Down: 14 | New: 11
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Deutsche Bank is reaffirming its Hold rating on shares of THQ Inc. (NASDAQ: THQI), but is suspending its $2.50 price target following managements pre-announcement of sales for the third quarter.
Management cut its Q3 sales guidance by 25 percent of its original guidance to a range of $510-$550 million. The company highlighted its WWE and Saints Row software titles are outperforming expectations, while the launch of the uDraw GameTablet on HD console platform is extremely weak. The firm notes its difficult to picture that Draw units missed by over 2.5 million.
To go inline with management's new guidance, the firm is reducing its Q3 sales and EPS estimates from $500 million and $1.24 to $375 million and $0.57. Operating profit for the quarter is now projected to be $47.5 million.
For FY12 and FY13, Deutsche cut its EPS estimates from ($0.36) and ($0.10) to ($1.19) and ($0.35). Revenue forecasts for FY12 and FY13 are now at $776 million and $800 million.
For an analyst ratings summary and ratings history on THQ Inc. click here. For more ratings news on THQ Inc. click here.
Shares of THQ Inc. closed at $1.46 yesterday.
Management cut its Q3 sales guidance by 25 percent of its original guidance to a range of $510-$550 million. The company highlighted its WWE and Saints Row software titles are outperforming expectations, while the launch of the uDraw GameTablet on HD console platform is extremely weak. The firm notes its difficult to picture that Draw units missed by over 2.5 million.
To go inline with management's new guidance, the firm is reducing its Q3 sales and EPS estimates from $500 million and $1.24 to $375 million and $0.57. Operating profit for the quarter is now projected to be $47.5 million.
For FY12 and FY13, Deutsche cut its EPS estimates from ($0.36) and ($0.10) to ($1.19) and ($0.35). Revenue forecasts for FY12 and FY13 are now at $776 million and $800 million.
For an analyst ratings summary and ratings history on THQ Inc. click here. For more ratings news on THQ Inc. click here.
Shares of THQ Inc. closed at $1.46 yesterday.
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