THQ Inc. (NASDAQ: THQI) has updated its quarterly guidance, and not for the better. The company is issuing a revenue warning which is said to be “primarily due to weaker-than-expected initial sales of its uDraw GameTablet” for Xbox 360 and Playstation 3 units.
Sales for its third quarter are now going to be as much as 25% lower than ir previously telegraphed. Its prior guidance was $510 million to $550 million for sales. What is unfortunate is that this quarter is the all-important Holiday quarter. Video game companies which suffer in the holidays have a rough year generally.
The company did note that WWE 2012 and the new Saints Row installments are expected to perform at or better than it gave guidance on last quarter.
THQ shares were already down 11% on the day at $1.46, and now shares are down another 22% at $1.13 in the after-hours trading session. Shares had already hit a new year-low today and the adjusted 52-week trading range was $1.37 to $6.53 before the lows seen in the after-hours.
THQ is now trading at levels lower than the panic selling seen in early 2009.
JON C. OGG