The following is an excerpt from a report compiled by Michael Pachter of Wedbush Securities.
We recommend that investors take a wait-and-see approach to Majesco (NASDAQ:COOL) shares due to slowing Zumba Fitness sales, a thin release slate of games, and disappointing guidance. Although we continue to believe that the company is one hit game away from significant appreciation beyond its current share price, it is not clear that such a game is included in its pipeline.
Majesco will report Q1:13 (ending January) results after the market close on Tuesday, March 12, with a conference call at 1:30pm PT (dial-in: 800-860- 2442, webcast: ir.majescoentertainment.com).
We expect Q1 results above consensus, driven primarily by Zumba games, but expense timing remains difficult to forecast. Our current estimates are for revenue of $25 million and EPS of $(0.02), compared to consensus of $29 million and $(0.03). Majesco previously guided to a holiday sales decline of at least 50% y-o-y and Q1 sales down significantly from last year as a result, with EPS between a modest loss to breakeven. Our revenue estimate…