Well, from a GAAP standpoint, not hot at all. Revenues declined 12% to $138.8 million. The operational loss increased 168% to just under $21 million. And the net loss tripled to $12.1 million, or $0.19 per diluted share.
What a disaster, huh? Let's go through some positive points of the earnings release. Total costs and expenses dropped nearly 4%. The licensing deal for Disney's
That's going to be the important thing going forward. When Sony
Investors with a long-term horizon stand a good chance of harvesting value from their portfolio with THQ. Over the next couple of holiday seasons, the publisher should move a lot of software. Of course, many publishers -- the aforementioned EA, Take-Two Interactive
I recently wrote a bullish article on THQ. I still think it makes a compelling investment idea going into the console cycle, although the stock has risen a bit since that piece. I'd reiterate that initiation of a position followed by dollar-cost-averaging might be a prudent paradigm. You could also wait for a pullback. No matter what, though, you'll want to do some due diligence on companies in this sector, since they are ripe for price appreciation over the long-term.
The Fool has you covered when it comes to video games:
- THQ Slings It
- THQ: Should You Play?
- Take Two Subpoenas and Call Me in the Morning
- Atari on Its Last Life?
Disney and Electronic Arts are recommendations of Motley Fool Stock Advisor , where Tom and David Gardner are always on the lookout for the market's best investments. Try it out for yourself -- it's free for 30 days .
Microsoft a Motley Fool Inside Value recommendation.
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