Sterne Agee Lowers Estimates On THQ (THQI)

Sterne Agee is lowering its earnings estimates on THQ Inc. THQI after it reported earnings yesterday. It has a Neutral rating on shares. In the report sent to investors, Sterne Agee writes, "THQ beat F3Q EPS expectations by $0.11 yet lowered full year by $0.15. The beat came from uDraw simultaneous with the lowered guidance is a result of 1) a title shift and 2) lowered expectations for several of the company's kids' movie-based licensed games. Also, the company took a $30M impairment charge related to licenses for kids' games to be released in FY12 (Kung Fu Panda, Puss in Boots etc.). Reiterating Neutral." Sterne Agee goes on to say, "We are lowering our FY11 revenue/EPS to $818M/($0.20) from $826M/($0.07). We are lowering our FY12 revenue/EPS estimate to $880M/$0.28 from $928M/$0.34 and FY13 estimate to $925M/$0.44 from $975M/$0.55." Shares of THQI lost 62 cents in after-hours trading yesterday to close at $5.79, a loss of 9.67%.