Analyst anticipates earnings

In advance of the release of fiscal reports this week, Wedbush Morgan Securities analyst Michael Pachter has weighed in on expected results for Activision, EA, Midway, and THQ.

Pachter expects Activision to exceed his estimates of USD 450 and earnings per share of USD .08, and to raise its fiscal year 08 guidance accordingly. The company recently announced stronger than expected sales of Guitar Hero, Spider-Man 3, Shrek the Third, and Transformers games.

As for Electronic Arts, Pachter expects Q1 earnings to be in line with guidance of USD 350 to 400 million, even though sales data suggests that the company is tracking behind the quarter.

Pachter believes the business realignment and recent management appointments demonstrate the company's resolve and discipline, despite some skepticism to the contrary.

Midway Games, reporting Q2 results, should fall slightly below estimates according to Pachter. He is "cautiously optimistic" that the company will perform better than it did during the previous console cycle, even though there is no clear visibility as to when it will achieve profitability.

Finally, Pachter believes that THQ's revenues will be in line with his estimates of USD 110 million and earnings per share of USD .025, with a strong slate of releases for the Nintendo Wii and DS platforms.