Game Makers Rise Ahead of Earnings

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Shares in Activision Inc. and THQ Inc. gained Wednesday as Wall Street analysts projected strong holiday sales and future earnings for the local videogame makers.


Agoura Hills-based THQ, which makes games based on the cartoon character SpongeBob Squarepants as well as several other titles, saw its shares rise 4 percent to $26.73 in afternoon trading on the Nasdaq.


The firm recently lowered its guidance for the remainder of the fiscal year citing delays and disappointing sales of several games. However, Banc of America Securities analyst Michael Savner said in a research report that the company “has positioned fiscal 2009 as its peak growth year.” THQ reports third-quarter earnings Thursday.


Shares in Activision Inc., which publishes the popular “Guitar Hero” franchise, saw its share rise 2.1 percent to $23.46 Wednesday afternoon.


The company is projecting a loss of a penny per share for the quarter. But Wedbush Morgan analyst Michael Pachter expects the company to raise its outlook for fiscal 2008 and to “remain optimistic for the balance of the year.” Activision reports third-quarter earnings Monday.


Both analysts also said strong overseas and holiday sales should boost both companies in the coming quarters.

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