Analyst: THQ To Post Lower-Than-Expected Revenue Numbers

Ahead of an expected Wednesday earnings report, Wedbush Morgan analyst Michael Pachter predicts THQ will report revenues slightly below expectations, thanks to "a series of mediocre releases." In a new analyst note today, Pachter says weak reviews led to lower-than-expected sales for THQ titles like Red Faction: Armageddon and Warhammer 40,000: Space Marine that were released in the company's second fiscal quarter, which ended in September. While NPD reports THQ's quarterly sales were up 19 percent from 2010, the increase is still below expectations of 36 to 50 percent growth for the period. The slower-than-expected first half means THQ is also likely to miss its revenue targets for the full fiscal year, ending in March, Pachter said. Upcoming releases like Saint's Row the Third, UFC and new uDraw tablets for the Xbox 360 and PlayStation 3 are unlikely to generate the company-record revenue needed to catch up with previous year-long expectations, he said. "The quality of upcoming games must improve significantly for the company to show earnings improvement, and execution remains uneven," Pachter said.