Turtle Beach Corp HEAR shares are dropping despite reporting a fourth-quarter earnings beat.
Adjusted earnings came in at $1.33 per share, beating estimates by 2 cents. Sales came in at $111.3 million, beating estimates by $1.1 million.
The company sees first-quarter adjusted earnings of 5 cents per share against a 9-cent per share consensus estimate. Full-year 2019 adjusted earnings guidance also was below estimates.
"We had a terrific fourth quarter, which capped off a truly transformational year for Turtle Beach," said CEO Juergen Stark. "We achieved record sales and profits, eliminated our long-term debt and maintained disciplined spending, all of which culminated in a dramatic increase in shareholder value.
"In a year of strong market growth, we outperformed the market. According to NPD, our North America market share ended 2018 at 46.1% versus 42.4% in 2017, which positions us as the clear leader in the console gaming headset market."
The company also announced the acquisition of PC gaming accessory business ROCCAT.
"This is a dynamic and strategically important deal for Turtle Beach," said Stark. "We are adding a complementary portfolio of PC gaming mice and keyboards, a skilled PC accessories team, and a highly synergistic distribution footprint.
"The acquisition is also a key step in achieving our goal of building a $100 million PC gaming accessories business in the coming years. ROCCAT accelerates our expansion into the roughly $1.6 billion PC gaming headset market, as well as directly enables us to address the roughly $1.3 billion PC gaming keyboard and mice market."
Highlights
- Net revenue increased 40 percent
- Net income increased 73 percent
- Adjusted net income increased 51 percent
- Adjusted EBITDA increased 45 percent
Turtle Beach shares are down 13.7 percent at $14.01 in the after-hours session.
Related Links:
Turtle Beach CEO Talks 'Fortnite,' Battle Royale Gaming: 'It's A Great Place To Be'
The Success Of 'Fortnite' Is Driving Massive Gaming Headset Sales
Photo courtesy of Turtle Beach.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Date | ticker | name | Actual EPS | EPS Surprise | Actual Rev | Rev Surprise |
---|
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.