Game maker THQ swings to a profit, beats expectations

Video game publisher THQ Inc. posted a better-than-expected quarterly profit Friday, boosted by sales of its new urban action title “Saints Row.”

Net income was $12.6 million, or 19 cents a share, for its second quarter ended Sept. 30, compared with a year-earlier loss of $1.4 million, or 2 cents a share.

Excluding equity-based compensation expenses, THQ said profit was 25 cents a share, easily beating the average Wall Street target of 3 cents, according to Reuters Estimates.

Chief Executive Brian Farrell said the holiday season “feels pretty good so far” but added that the company was taking a careful approach, given the still unfinished move to new console technology.

Game makers have grappled this year with a revenue-damping move to new game consoles and have only recently begun to see sentiment turn.

Agoura Hills-based THQ said the preliminary results and outlook did not take into account any adjustments that probably would result from its previously announced review of past stock option grants.

THQ said second-quarter sales rose 68% to $240.2 million on the popularity of two new titles, “Saints Row” and “Company of Heroes,” and continued sales of games based on the Disney-Pixar animated film “Cars.”

Shares of THQ sank a dime Friday to $30.