- Following yesterday's announcement that THQ has ceased production on its Juiced and Stuntman franchises and closed its Concrete Games studio, analysts from Wedbush Morgan, Lazard, and Stern Agee have all remained upbeat on the publisher's future, despite a sharp fall of the company's stock.
"While this is a painful step," said Wedbush Morgan's Michael Pachter, "we think it positions THQ to grow earnings dramatically in FY:09, unburdened by these balance sheet items."
Though Wedbush has lowered estimates on the company "to reflect significantly higher execution risk, given the company's poor performance in FY:08," Pachter says the company's lineup "is quite strong next year, and the increased write offs of capitalized software and streamlining of projects and should position the company to report operating margins in line with its historical performance next year."
Lazard's Colin Sebastian echoed the sentiments, saying that the publisher "is taking more aggressive steps to pare its product portfolio of lower quality and underperforming franchises, and to focus on proven franchises and titles with better potential, including WWE Smackdown, Pixar (Wall-E), Saints Row, Red Faction, and the new UFC license. While we will continue to review the progress of THQ's F2009 pipeline, at this point we are...