THQ Stock Falls 48% Following Earnings Report
Currently valued at $1.57 per share.
by Andrew Goldfarb NOVEMBER 6, 2012
Following THQ’s earnings report yesterday, company stock has fallen nearly 50%. As of this writing, THQ stock is currently down to $1.57 per share compared to over $3 when the market closed yesterday, marking a decline of 48%.
In its earnings report, THQ delayed three of its upcoming games and noted that the delays will have “financial implications.” In a statement, THQ said it “will likely need to raise additional capital, and may need to defer and/or curtail currently planned expenditures, cancel projects currently in development, sell assets, and/or pursue additional funding or additional external sources of liquidity, which may not be available on financially attractive terms.” For now, the company has partnered with brokerage firm Centerview Partners to evaluate “strategic and financing alternatives” for its future.
Earlier this year, THQ enacted a reverse split of its stock to avoid being delisted by NASDAQ, which requires companies to maintain a minimum share price of $1.00.