THQI Second Quarter Earnings Sneak Peek

THQ Inc. (NASDAQ:THQI) will unveil its latest earnings on Monday, November 5, 2012. THQ is a worldwide developer and publisher of interactive entertainment software for all popular game systems.

THQ Inc. Earnings Preview Cheat Sheet

Wall St. Earnings Expectations: The average estimate of analysts is for net loss of $3.54 per share, a narrower loss from the year-earlier quarter net loss of $7.10. During the past three months, the average estimate has moved down from a loss of $1.25. Between one and three months ago, the average estimate moved down. It has been unchanged at a loss of $3.54 during the last month.

Past Earnings Performance: The company is looking to beat analyst estimates for the third quarter in a row. Last quarter, it beat estimates with a loss of $3.31 per share against the mean estimate of $4.15. In the prior quarter, the company reported net loss of $1.30.

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A Look Back: In the first quarter, the company swung to a profit of $15.4 million ($2 a share) from a loss of $38.4 million (56 cents) a year earlier, beating analyst estimates. Revenue fell 31.5% to $133.7 million from $195.2 million.

Wall St. Revenue Expectations: On average, analysts predict $84.4 million in revenue this quarter, a decline of 29.5% from the year-ago quarter. Analysts are forecasting total revenue of $421.4 million for the year, a decline of 49.6% from last year’s revenue of $835.9 million.

Balance Sheet Analysis: The company’s current ratio of assets to liabilities came in at 1.18 last quarter. The current ratio is an indication of a firm’s liquidity and ability to meet creditor demands and generally, for every dollar the company owes in the short term, it has that figure available in assets that can be converted to cash in the short term.

Key Stats:

Heading into this earnings season, the company is looking to build on good signs from last quarter. The company reported losses in the third quarter of the last fiscal year and the fourth quarter of the last fiscal year, but finished in the black with income of $15.4 million in the first.

On the top line, the company is looking to rebound after a revenue drop last quarter. Revenue rose 48.3% in the the fourth quarter of the last fiscal year after dropping in the first quarter.

Analyst Ratings: There are mostly holds on the stock with seven of eight analysts surveyed giving that rating.

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(Company fundamentals by Xignite Financials. Earnings estimates provided by Zacks)

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