Canaccord Genuity Morning Coffee on THQ (THQI): Where’s the Ultimate Warrior When You Need Him?
Tweet
Share
E-mailGet Alerts THQI Hot Sheet
Price: $0.31 --0%
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Rating Summary:
0 Buy, 6 Hold, 0 Sell
Rating Trend: = Flat
Today's Overall Ratings:
Up: 8 | Down: 5 | New: 26
Join SI Premium – FREE
Canaccord Genuity Morning Coffee on THQ (Nasdaq: THQI): Where’s the Ultimate Warrior when you need him?
THQ investors were hoping they could hit the reset button after the company reported earnings that fell well short of analyst estimates and forecast weaker sales in F2013. Adjusted earnings in Q3 were $0.35 per share, $0.30 below the consensus estimate of $0.65 as sales of casual and family games failed to impress. For Q4, the company expects a net loss of $0.35-0.50 per share on sales of $130-150 million. While no specific sales estimate was provided for 2013, CFO Paul Pucino said F13 sales would be roughly half of the 2012 number. Pucino said the company was going to shrink, a day after it announced nearly 240 layoffs at its various development studios. Additionally, it has been warned by NASDAQ that it may be delisted if it is not able to raise its share price over the next six months. THQ, whose big name games are wrestling and martial arts based, has struggled of late as larger rivals Activision Blizzard (Nasdaq: ATVI) and Electronic Arts (NYSE: EA) have been able to invest more into big budget games while online providers such as Zynga (Nasdaq: ZNGA) have been able to capture a larger share of the free/cheap game market.
Note - shares fell 30% last Friday (Feb. 3), but are rebounding somewhat today, currently up 5.5%
THQ investors were hoping they could hit the reset button after the company reported earnings that fell well short of analyst estimates and forecast weaker sales in F2013. Adjusted earnings in Q3 were $0.35 per share, $0.30 below the consensus estimate of $0.65 as sales of casual and family games failed to impress. For Q4, the company expects a net loss of $0.35-0.50 per share on sales of $130-150 million. While no specific sales estimate was provided for 2013, CFO Paul Pucino said F13 sales would be roughly half of the 2012 number. Pucino said the company was going to shrink, a day after it announced nearly 240 layoffs at its various development studios. Additionally, it has been warned by NASDAQ that it may be delisted if it is not able to raise its share price over the next six months. THQ, whose big name games are wrestling and martial arts based, has struggled of late as larger rivals Activision Blizzard (Nasdaq: ATVI) and Electronic Arts (NYSE: EA) have been able to invest more into big budget games while online providers such as Zynga (Nasdaq: ZNGA) have been able to capture a larger share of the free/cheap game market.
Note - shares fell 30% last Friday (Feb. 3), but are rebounding somewhat today, currently up 5.5%
Serious News for Serious Traders! Try StreetInsider.com Premium Free!
You May Also Be Interested In
- Walmart (WMT) PT Lowered to $130 at UBS on Investment Narrative's Competing Dynamics
- Investing.com’s stocks of the week
- UBS says bull market has further to run
Create E-mail Alert Related Categories
Analyst CommentsRelated Entities
EarningsSign up for StreetInsider Free!
Receive full access to all new and archived articles, unlimited portfolio tracking, e-mail alerts, custom newswires and RSS feeds - and more!
