Turtle Beach Shares Rise On Forecast Of Beat-And-Raise Q3

Turtle Beach Corp HEAR shares, which took-off strongly in mid-May following the release of the headset maker's first-quarter print, are likely to see incremental momentum Thursday.

The stock was trading up 17.53 percent to $20.13 off the open Thursday.

What Happened

Turtle Beach released preliminary fiscal third-quarter results and said it expects net revenue of $73 million to $74 million, an upward revision from its prior guidance of $65 million.

The estimated revenues represent potential 103-106-percent year-over-year growth.

Turtle Beach forecast EPS to come in between 74 and 78 cents, sharply higher than the previous guidance of 44 cents.

In the year-ago quarter, the company reported a loss of 4 cents per share.

Turtle Beach also outlined the possibility of EPS exceeding its upwardly revised expectations by as much as 10 cents, depending on the final determination of certain tax treatments.

Analysts, on average, estimate Q3 EPS of 46 cents on revenue of $65.58 million.

The full-year outlook could increase at least by the amount by which the Q3 guidance was lifted, Turtle Beach said.

In its Q2 earnings release, the sound card manufacturer raised its 2018 net revenue guidance from $205 million to $255 million and EPS guidance from 95 cents to $1.95.

The consensus estimates call for FY18 EPS of $2.12 and revenue of $257 million.

Gaming Growth Drives Rosier Outlook 

"The strong increase in demand for gaming headsets that occurred with the rise of the 'battle royale' genre has continued, drawing new gamers into the market, leading veteran gamers to upgrade their gear and increasing the overall usage rate and installed base of gaming headsets," Turtle Beach CEO Juergen Stark said in a statement. 

"Exciting launches such as 'Call of Duty: Black Ops 4' and 'Red Dead Redemption 2,' coming this month, should provide another set of high headset usage games."

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