THQ Slumps on Poor Quarter, Outlook

The company widened its loss in the first quarter and forecasts a weak current quarter.
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SAN FRANCISCO -- Video-game publisher



widened its loss in the fiscal first quarter and missed analysts' expectations for the current quarter and fiscal year after it offered lower outlook.

The company posted a net loss of $27.2 million, or 41 cents a share, compared with a net loss of $9.3 million, or 14 cents a share, the year before.

Excluding items, the company posted a net loss of $25.4 million, or 38 cents a share, which was in line with analysts' expectations. A year ago, it had reported net loss, excluding items, of $6.2 million, or 9 cents a share.

Sales for the quarter rose to $137.6 million from $104.5 million the year before. Analysts had been expecting revenue of $121.11 million.

Shares of THQ was down $2.05, or 12.8%, to $14 in extended trading on Wednesday.

First-quarter sales were driven by games such as the


(DIS) - Get Report

Pixar film-based


, a new Wii title

Big Beach Sports

and continued strong sales of

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MX vs. ATV Untamed


For the second quarter, THQ said it expects to report sales in the range of $160 million to $170 million and a net loss of 35 cents to 39 cents a share. Analysts are expecting revenue of $229.3 million and a loss of 12 cents a share.

For the fiscal year the company forecast sales in the range of $1.15 billion to $1.17 billion and earnings in the range of 80 cents to 90 cents a share. Analysts are looking for revenue of $1.18 billion and earnings of 99 cents a share.

THQ's weak outlook comes on the heels of larger competitor

Electronic Arts'


weak results Tuesday. EA

missed analysts' estimates

for the first quarter sending it stock down nearly 6.5%. Shares of EA closed down $3.11 to $44.29.

Video games industry's newly minted powerhouse

Activision Blizzard


will report its earnings Thursday though the company


its results earlier this month.