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Turtle Beach shares dip despite topping 3Q revenue and raising its full-year outlook

The audio accessory company upped its full-year guidance to $2.55 EPS on revenue of $270 million
Gamer playing a PC video game
Turtle Beach manufactures audio accessories, including headsets used by gamers

Turtle Beach Corporation (NASDAQ:HEAR) topped revenue estimates in its third-quarter results as the release of Call of Duty: Black Ops 4 and Red Dead Redemption 2 spurred the demand for headsets.

The audio accessory company reported earnings of $0.91 per share on revenue of $74.4 million compared with a net loss of $0.04 per share on revenue of $35.98 million in the previous year’s third quarter.

The California-based company topped Wall Street estimates of $0.77 EPS and surpassed revenue estimates of $73.4 million, as provided by Nasdaq.

Shares of Turtle Beach sank double digits in Tuesday after-hours trading and continued to fall nearly 13% to $18.86 in Wednesday morning trading.

READ: Turtle Beach an attractive stock to play given resurgence of video and online games, says Oppenheimer

“This growth is driven by market share gains from a great portfolio of innovative products that enhance game play for all levels of gamers in a strong overall console gaming market,” said CEO Juergen Stark in the company’s press release.

For the fourth quarter, the company expects earnings of $1.02 per share on revenue of $79.7 million.

Turtle Beach upped its full-year guidance to $2.55 per share on revenue of $270 million compared with its prior guidance of $1.95 EPS on revenue of $255 million.

Marketing research company NPD found that year-to-date through August, Turtle Beach sold more console video gaming headsets than any other competitor in any other calendar year since 2006.

The company’s surveys suggest that gamers replace their headsets every 20 to 24 months.

CORRECTION: The original version of this story incorrectly stated that the company missed on earnings, as per data provided by Yahoo Finance.

 

Contact Lenore Fedow at [email protected]

Follow her on Twitter@LenoreMariee

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