Shares of Turtle Beach Corp. (NASDAQ:HEAR) soared on Thursday after the San Diego gaming headset and audio accessory company posted first-quarter earnings that handily beat Wall Street analyst expectations.
Turtle Beach popped 78.5% to US$12.39 at 11.25 am ET.
For the quarter ended March 31, the company booked earnings of US$0.16 per share on revenue of US$40.9mln. The consensus earnings estimate was for breakeven results on revenue of US$40mln. Revenue grew 184.9% on a year-over-year basis from US$14.4mln in 2017.
Turtle Beach which had previously guided for earnings of around US$29mln blew past its own estimates.
"As indicated in our pre-announcement, we delivered substantial growth in our first quarter, both relative to last year and our prior outlook," said Juergen Stark, CEO, Turtle Beach.
"This growth was due to market share gains on top of a very strong overall market, propelled by the successes of Fortnite and PlayerUnknown's Battlegrounds, as these games have driven new gamers into the market and much higher headset attach rates than we have historically experienced.”
"We expect the momentum from this strong market to continue and have raised our 2018 financial outlook accordingly,” said Stark.
The company said it expects a second quarter loss of around US$0.05 per share on revenue of approximately US$48mln. The current consensus estimate is a loss of US$0.52 per share on revenue of US$21.7mln for the quarter ending June 30, 2018.
The company also raised its full year outlook and said it expects 2018 earnings of approximately US$0.95 per share on revenue of around US$205mln. The current consensus earnings estimate is US$0.37 per share on revenue of US$170.5mln for the year ending December 31, 2018.
Lake Street Capital Markets research analyst Mark Argento reiterated a Buy rating on Turtle Beach and told clients the gaming headset maker offered a “select growth opportunity.”