Wells Fargo Lowering Earnings On THQ (THQI)

Wells Fargo Securities is lowering its earnings estimates on THQ Inc.

, after the company lowered its own earnings outlook yesterday after the bell. It is reiterating its Market Perform, and $5-$6 price target on THQ. In the research note, Wells Fargo writes, "F2011 outlook lowered on delay of Red Faction Armageddon. After the market close, THQ lowered its F2011 non-GAAP sales and EPS outlook from $845-$865M and breakeven to $800-$825M and ($0.10-$0.20) following the delay of Red Faction Armageddon from 4QF11 to 1QF12. As a result, we lower our F2011 estimates from $859M and breakeven to $813M and ($0.15). Despite the shift of Red Faction into the next fiscal year, we leave our F2012 estimates unchanged at this time due to the difficult industry back drop and the potential to see additional changes to the F2012 lineup." Shares of THQ are down 14 cents in early Tuesday trade to $3.59, a loss of 3.75%.