THQ’s Profit Tumbles 24% on Lack of New Hits
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THQ Inc., a Calabasas-based maker of video games, said fiscal third-quarter profit dropped 24% because it failed to produce new blockbuster titles.
Net income in the quarter ended Dec. 31 fell to $47.6 mil- lion, or 72 cents a share, from $62.9 million, or $1.05, a year earlier, THQ said. Sales fell 11% to $357.8 million. Profit and revenue beat analysts’ estimates.
THQ hasn’t had a follow-up to “The Incredibles,” which has sold 6 million copies since its release in late 2004, or “SpongeBob SquarePants.” The company is delaying games for new consoles after shortages developed with Microsoft Corp.’s Xbox 360 machine.
THQ forecast fiscal fourth-quarter earnings of 2 cents a share on sales of $135 million. That misses the 11-cent average estimate of analysts surveyed by Thomson Financial. Analysts expected sales of $148.9 million.
Shares of THQ rose 34 cents to $26.54.
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