Video game headset manufacturer Turtle Beach (HEAR) late Thursday exceeded Wall Street targets for the fourth quarter. But he is disappointed by a weak indication of profits, which caused his actions to collapse in extensive trading.
The San Diego-based company earned $ 1.33 per share on sales of $ 111.3 million in the December quarter. Analysts had expected Turtle Beach earnings of $ 1.31 a share on sales of $ 110 million. On an annual basis, Turtle Beach's earnings increased 15% while sales rose 40%.
For the current quarter, the company expects adjusted profits of 5 cents per share on sales of $ 42 million. Wall Street was modeling Turtle Beach's 12 cents for a $ 38 million sale, according to Zacks Investment Research.
By 2019, Turtle Beach led the $ 1 earnings per share on sales of $ 244 million. Analysts were looking for $ 1.76 in earnings per share on sales of $ 250 million.
Turtle Beach's earnings horizon has an influx of investors
Turtle Beach shares fell 12% in after-hours trading on the stock market today. During the ordinary session, it rose 1.9% to 16.25.
CEO Juergen Stark said that gaming headset sales are strong due to the popularity of battle-royale online video games such as "Fortnite" by Epic Games and "Apex Legends" by Electronic Arts (EA).
Turtle Beach is gaining market share, he said in a press release.
"According to NPD, our North American market share ended in 2018 at 46.1% compared to 42.4% in 2017, which positions us as the undisputed leader in the console gaming headset market ", said Stark. "In 2018, the gaming headset market, measured by revenue, was 69%, while Turtle Beach was 84%."
Also on Thursday, Turtle Beach announced its plan for the acquisition of Roccat, a German PC peripheral company. Roccat produces gaming mice, keyboards and other accessories.
Turtle Beach buys Roccat in a mostly cash deal for $ 15.8 million. The agreement also includes about $ 3.4 million in potential payments based on the achievement of commercial targets
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