Midway reported yet another loss yesterday, missing EPS estimates (though top line beat consensus) and forcing Credit Suisse to cut estimates.
Revenue ($29.9M, +170% yoy) came in above guidance of $28M and consensus of $27M. GAAP EPS ($0.37) came in below guidance and consensus of $0.30 due to a $0.08 impact from a non-cash interest expense. The loss is the 33rd for the struggling gaming company in 34 quarters. CS:
With the losses unlikely to end and a cash burn rate that suggests 3 – 4 quarters before reserves and the new credit facility are exhausted, we still see considerable downside in the stock. While the company owns valuable assets, such as the Mortal Kombat franchise, we don’t believe they are enough to support the current cost structure and question whether they are enough to sustain an independent company regardless of the cost structure. We are maintaining our $0 price target and reiterating our Underperform rating.
Business Insider Emails & Alerts
Site highlights each day to your inbox.