Pachter and Sebastian: still optimistic for THQ
Despite THQ‘s under-performance for this quarter, analysts Michael Pachter of Wedbush Morgan and Colin Sebastian of Lazard Capital Market remain optimistic for the game developer studio and maintains that the company’s stock is still a “buy.”
THQ’s revenue for this quarter was significantly lower than their initial forecast, owing to the lack of sales of two of their games in the market: Stuntman: Ignition (PS2, PS3, 360) and Juiced 2: Hot Import Nights (PS3, PS2, PSP, Xbox 360, PC, DS). This, however, did not deter Pachter who, despite lowering his estimates for THQ, says that this is not likely to happen again.
Sebastian shares the same sentiments, saying that THQ’s 2009 lineup seems to be a “significant improvement,” mentioning their next Pixar video game adaptation of Wall-E, Saints Row 2 and the sequel to Red Faction. He predicts that the video game for Wall-E will do much better than their Ratatouille saying: “Stated simply, robots are cuter than rats, and make for better video game fodder.”
THQ has announced earlier that they will be lowering their fiscal Q2 revenue guidance from US$ 240 million to US$ 229 million, and full-year sales of US$ 1.12 billion to US$ 1.06 billion.
Via Next Generation
Despite THQ‘s under-performance for this quarter, analysts Michael Pachter of Wedbush Morgan and Colin Sebastian of Lazard Capital Market remain optimistic for the game developer studio and maintains that the company’s stock is still a “buy.”
THQ’s revenue for this quarter was significantly lower than their initial forecast, owing to the lack of sales of two of their games in the market: Stuntman: Ignition (PS2, PS3, 360) and Juiced 2: Hot Import Nights (PS3, PS2, PSP, Xbox 360, PC, DS). This, however, did not deter Pachter who, despite lowering his estimates for THQ, says that this is not likely to happen again.
Sebastian shares the same sentiments, saying that THQ’s 2009 lineup seems to be a “significant improvement,” mentioning their next Pixar video game adaptation of Wall-E, Saints Row 2 and the sequel to Red Faction. He predicts that the video game for Wall-E will do much better than their Ratatouille saying: “Stated simply, robots are cuter than rats, and make for better video game fodder.”
THQ has announced earlier that they will be lowering their fiscal Q2 revenue guidance from US$ 240 million to US$ 229 million, and full-year sales of US$ 1.12 billion to US$ 1.06 billion.
Via Next Generation
About The Author
