SI is very slow today.
I have already posted my conference call notes.
I spoke with Deborah Lake afterwards. According to the release schedule, several titles have been either pushed out to 1999 or put on hold. It seems to me that some titles are in question, as to their release date (Speed Tribes, WCW Nitro 64, BASS Masters PSX, International Rally PSX, Penny Racers PSX). As a result of the shifting of release dates and potential for certain titles to be canned, THQ's (overly) conservative guidance on gross margins, higher than expected reserves, and higher than expected selling expenses, I'm revising my estimates downward.
My old and new Q3 estimates are:
Sales $49,250
EPS $0.66
Sales $35,050
EPS $0.41
Q4 estimates remain similar to my originals, because although several titles from Q3 moved to Q4, several Q4 titles moved to Q1.
Old (before today) and new FY1998 estimates:
Sales $204,830
EPS $3.10
Sales $189,700
EPS $2.70
I haven't finished my 1999 revisions. But 30% EPS growth seems quite possible. And 2000 looks promising, especially with the possibility of a Dreamcast and PC version of WWF and BASS (perhaps both developed by GameFX). My year-end target is still $55 (pre-split).
Todd |
