Majesco Entertainment Plunges 15% Despite Beat And Raise Quarter

Investors are taking profits in Majesco Entertainment COOL, on Tuesday despite a beat and raise quarter for the company and a price target hike at Needham & Co. Majesco reported non-GAAP net income of $5.4 million or $0.13 per share, compared to $1.2 million or $0.03 per share, in the year ago period. This compared to analysts' consensus EPS estimates of $0.03. Net revenues came in at $32.14 million, compared with $10.91 million in the comparable quarter a year ago. This compared to analysts' consensus revenue estimates of $25.50 million. Looking ahead to fiscal 2011, the company raised its outlook, expecting non-GAAP EPS of $0.30 to $0.35, up from previous guidance of $0.20 to $0.25 and net revenue in a range of $110 million to $120 million, up from the prior range of $100 to $110 million. Analysts currently expect earnings per share of $0.33 on revenues of $119.00 million for fiscal 2011. The stock's price target has also been raised at Needham & Co. from $4 to $5. Despite the good news, investors have pounded COOL with sell orders, and the stock is currently down around 15% at $3.74.