THQ financials: THQ hits guidance but sees earnings slashed for third quarter

THQ has reported third quarter financials, recording revenues of $509.6 million for the three months ending December 31, up 7 percent on the same period in the previous year. Despite the rise, however, earnings took a 75 percent hit for the quarter compared to Q3 2006, dropping from $62 million to $15.5 million, a slide the company attributed to development cancellations.

WWE SmackDown vs. Raw 2008, Cars: Mater-National and MX vs. ATV Untamed were named as the main cash drivers for the 2007 holiday season.

“During the holiday quarter, we were pleased with the record performance of WWE SmackDown vs. Raw 2008 and the successful launch of our internally developed game MX vs. ATV Untamed,” said THQ boss Brian Farrell. “We continue to strengthen our product development capabilities to support our long-term strategy of creating new owned intellectual properties. We look forward to launching Frontlines: Fuel of War at the end of this month. In fiscal 2009, we are well positioned for increased sales and profitability with strong owned intellectual properties such as Red Faction and Saints Row and well-known licensed franchises including WWE, UFC, Disney/Pixar and Nickelodeon.”

The company issued dreary guidance for the full year, ending March 31, with expected revenues of $1.04 billion and a loss per share of 16 cents.

Full release here.