THQ Fourth Quarter Results to Exceed Prior Expectations

Soaring the most in more than two decades, THQ Inc. expects to report a smaller fourth quarter loss than anticipated thanks to the rising sales of the “Saints Row: The Third” video game, reports Bloomberg.

According to the report, the Agoura Hills, California-based company gained 33 percent to 60 cents in New York Wednesday after earlier surging as much as 46 percent for the biggest intraday increase since at least 1991.

THQ is planning to save cash by cutting 240 jobs, reducing executives’ pay and focusing development efforts on new properties and social games, Michael Pachter, an analyst with Wedbush Securities in Los Angeles, said today in an interview with Bloomberg.

“The good news is they know they face a potential cash crisis, and they’re acting prudently to address it,” Pachter, who has a neutral rating on the shares, told Bloomberg. “Before they cut prices, they probably were going to run out of money by Christmas.”

The company expects a net loss, excluding some items, in the range of 10 cents to 20 cents a share in the period ended March 31, compared with a previous forecast for a loss of 35 cents to 50 cents, according to a statement today.

Net sales were $160 million to $170 million, compared with a prior range of $130 million to $150 million, THQ said in the report.

The company is scheduled to report fourth-quarter results on May 15.

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