Video-game headset maker Turtle Beach (HEAR) late Thursday topped Wall Street's fourth-quarter goal. But it was disappointed with weak earnings guidance, which sent its stock mark in extended trading.
The San Diego-based company achieved an adjusted $ 1.33 per share on sales of $ 111.3 million in the December quarter. Analysts expected Turtle Beach revenues of $ 1.31 per share on sales of $ 110 million. On an annual basis, Turtle Beach revenue rose 15%, while sales increased 40%.
For the current quarter, the company expects an adjusted earnings of 5 cents per share on revenue of $ 42 million. Wall Street was modeling Turtle Beach revenue of 12 cents, a share of $ 38 million in revenue, according to Zacks Investment Research.
In 2019, Turtle Beach led an adjusted earnings per share of $ 1 per share on sales of $ 244 million. Analysts were looking for $ 1.76 in earnings per share on sales of $ 250 million.
Turtle Beach Earnings Outlook has investors Reeling
Turtle Beach share fell 12% in retrospect on the stock market today. During the regular session, it rose 1.9% to 16.25.
CEO Juergen Stark said the sale of gaming headsets is strong thanks to the popularity of online fighting-royal video games such as "Fortnite" from Epic Games and "Apex Legends" from Electronic Arts (EA).
Turtle Beach also wins market share, he said in a press release.
"According to the NPD, our market share in North America ended 2018 to 46.1% vs. 42.4% in 2017, which sets us as the clear leader in the console's game headset market," Stark said. , measured by revenue, up 69%, while Turtle Beach was up 84%. "Also, Turtle Beach announced Thursday's plan to buy Roccat, a German PC-based broadcast company. Roccat stocks game mice, keyboards and other accessories.
Turtle Beach buys Roccat for a major $ 15.8 million cash deal, including $ 3.4 million in potential milestone payouts
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