The video game sector has produced several winners in 2020. Recent IPO Corsair Gaming CRSR reported its third-quarter earnings, which saw growth from the industry and products selling out as soon as they hit shelves. The company makes gaming-related gear and technology.
Earnings: Corsair Gaming reported a 60.7% year-over-year increase in third-quarter revenue.
Game and creator segment revenue was up 128.8% year-over-year to $161.6 million. Gaming components and systems segment revenue was up 28.3% year-over-year to $295.5 million.
Adjusted operating income was $61.4 million in the third quarter, a year-over-year increase of 194%.
Corsair is guiding for full-year revenue to come in a range of $1.62 billion to $1.63 billion. Full-year adjusted operating income is guided for a range of $178 million to $184 million.
Related Link: Cramer Weighs In On Corsair, Marvell and More
What’s Next: Corsair highlighted several acquisitions. The company acquired Gamer Sensei, a gaming coaching platform in November. Corsair also announced the acquisition of EpocCam, a video app that turns an iOS device into an HD webcam. EpocCam has over 5 million downloads.
Corsair highlighted several upcoming products for the fourth quarter. This includes new keyboards for computers and its first officially licensed headset for Xbox consoles from Microsoft Corporation MSFT.
Growth in Gaming, Streaming: The gaming market is growing as is the streaming segment, which could make Corsair Gaming a good long-term pick.
“Consumers continue to learn more about high performance gaming and streaming gear and are upgrading. We also believe more new gamers and streamers are entering the market,” said CEO Andy Paul.
The CEO also points to a high number of entry-level products being sold, which could point to the addressable market growing.
The demand to create and build gaming PCs is a large trend for Corsair Gaming. The company highlighted new technology from Intel Corporation INTC, NVIDIA Corporation NVDA and Advanced Micro Devices AMD increasing this growth trend.
“The games themselves are becoming more immersive and social each year and particularly with the rapid rise of live game streaming, gaming is taking an even larger share of the entertainment landscape.”
What’s Next: Corsair could see an even stronger fourth quarter with the launches of new consoles from Microsoft and Sony Corporation SNE.
The company also saw huge demand in the third quarter, which led to some supply issues that could’ve limited Corsair’s revenue.
“This last quarter was one with very strong demand, with many major retailers running out of stock of our gear.”
Most gear sold out as soon as it hit the shelves said the company. The company said its stock situation is better and supply chain and manufacturing has ramped up.
CRSR Price Action: Corsair shares are up 1.7% to $26.77 on Tuesday. Shares are up from their $17 IPO price.
© 2024 Benzinga.com. Benzinga does not provide investment advice. All rights reserved.
Comments
Trade confidently with insights and alerts from analyst ratings, free reports and breaking news that affects the stocks you care about.
