THQ returned to profitability in its fiscal Q4, earning $6.5 million, or $0.09/share, on sales growth of 16% to $172.1m. It lost $8.6m, or $0.14/share in the same period last year. Adjusted EPS of $0.15 beat the Street by a penny, but disappointing Q1 guidance sent its shares down 6.3% to $32.50 in the after-hours, on volume of 163,000+. THQ lost 0.2% to $34.69 during normal trading Thursday. It expects Q1 revenues of around $110m and a net loss of $0.26/share, compared to analysts' average estimate of $148.6m and -$0.03/share (Bloomberg survey). Wedbush Morgan analyst Michael Pachter said the lower-than-expected guidance is partially due to the late release of "Ratatouille," a Disney/Pixar movie-based game, in which most sales will be realized from Q2. The Company reiterated full year guidance of $1.34 - $1.44/share on sales of $1.12b - $1.15b. Analysts expect $1.38/share on sales of $1.14b.
Sources: THQ F4Q07 (Qtr End 3/31/07) Earnings Call Transcript, Press release, Bloomberg, MarketWatch
Commentary: THQ: Three Reasons For Caution • THQ: Strong Slate of New Games Ahead • Are Nintendo Sales Good For Video Game Stocks?
Stocks/ETFs to watch: THQ (THQI). Competitors: Activision (ATVI), Electronic Arts (ERTS),Take-Two Interactive Software (TTWO), Konami (KNM)
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