Video game maker THQ Inc reported better-than-expected quarterly results and forecast a profitable holiday quarter, sending its shares higher in afterhours trading.
Analysts are closely watching the company's biggest releases in the current fiscal third quarter, which are Saints Row, a new wrestling title and a drawing tablet called the uDraw.
They crushed it during the quarter, but now its all about their holiday pipeline, said Mike Hickey, a National Alliance Capital Markets analyst.
Chief Executive Brian Farrell said in a statement that the third quarter will be the largest quarter in our history, in terms of sales and earnings.
Shares of THQ rose 15 percent to $2.45 in afterhours trade following the earnings announcement, up from their $2.13 close in the regular session.
In a conference call, the company's finance chief, Paul Pucino, said the company would post earnings of $1.20 per share to $1.50 per share in the third quarter. The midpoint of this range is above analysts' average expectations of $1.28 per share.
Taking into account the deferral of digital revenue from online games, THQ's net loss was $46.6 million, or 69 cents per share in its second quarter than ended Sept 30, coming in above analysts' average expectations of a loss of 83 cents per share.
The Warhammer 40,000: Space Marine shooter game, which came out in September, helped drive its quarterly results, the company said.
Adjusted for digital revenue, THQ's sales rose 70 percent to $119.6 million, which beat the $100.4 million analysts were on average expecting, according to Thomson Reuters I/B/E/S.
THQ, which is known for its WWE SmackDown vs Raw and Saints Row video games, announced in August it was restructuring. It shut down some of its video game studios and cut 200 jobs. (Reporting by Liana B. Baker; Editing by Tim Dobbyn)