THQ MOVES AHEAD IN GAMES.

Byline: Enrique Rivero Daily News Staff Writer

Riding on the continuing demand for computer games, entertainment software maker THQ Inc.'s 1997 net earnings jumped nearly fivefold over the prior year's results.

Net income for the fiscal year was $9.3 million, or $1.35 per diluted share, compared with $1.9 million (39 cents). Sales shot up 78 percent to $89.4 million from $50.3 million.

The results, which were released late Tuesday, exceeded analysts' expectations.

``They blew everyone's numbers out of the water,'' said James Lin, vice president of equity research at Wedbush Morgan Securities in Los Angeles.

The market for the Sony PlayStation, Nintendo 64 and palm-size Nintendo Game Boy is strong. And THQ's recently released titles for those platforms, such as ``WCW vs. NWO: World Tour'' and ``Ghost in the Shell,'' as well as older games like the one based on Walt Disney Co.'s ``Toy Story'' are much in demand, Lin said.

``What it really shows is the overall market for video games and entertainment software is extremely robust and I think THQ is one of the better companies out there,'' he said.

President and Chief Executive Officer Brian Farrell said business was particularly strong during the fourth quarter, when sales jumped 139 percent to a record $48.9 million.

``I think our company was very well poised in the Christmas season to take advantage of it,'' he said.

Stewart Halpern, a principal and senior entertainment analyst with Furman Selz LLC in New York, gave the company's stock a ``strong buy'' recommendation and said he expects even stronger results - $1.56 per share - in fiscal 1998.

``It's a company and management doing an outstanding job in an industry that has strong fundamentals going for it,'' he said.