Video game publisher THQ
After the bell yesterday, THQ said revenues jumped 79% to $158 million -- results that were largely driven by strong sales of sci-fi spoof Destroy All Humans! and street racing game Juiced, which have each shipped more than a million units. Meanwhile, the company's net loss remained flat at $4 million, or $0.10 per share. Both figures leapfrogged analysts' expectations for a net loss of $0.15 per share on $137 million in revenue.
Despite the healthy rise in revenue, the company still showed a quarterly loss due to rising costs. Most notably, product development costs almost doubled to $19 million, while marketing costs more than doubled to $37 million.
But it was a fairly productive quarter overall. THQ managed to establish two new franchises geared to a more mature audience during what is typically a seasonally weak quarter -- one in which the industry began transitioning to its next-generation consoles.
THQ is traditionally known for games targeting a younger audience, based on properties such as Pixar's
Looking ahead, the company expects another net loss of $0.10 per share on $125 million in revenues for the second quarter. For fiscal 2006, the company forecast earnings of $1 per share on $750 million in revenues.
Unfortunately, THQ no longer appears to be overlooked. The stock has roughly doubled over the past year, and trades at a hefty 35 times this year's earnings.
For more on THQ, check out:
- THQ Invades Hollywood
- THQ: Great Earnings, Bad Guidance
- THQ's Incredible Quarter
- THQ: A Hidden Gem?
- THQ Gets Juiced