Why Shares Of Turtle Beach Are Diving Monday

Shares of video game accessories Turtle Beach Corporation HEAR are falling after hours Monday after reporting second quarter financial results and an update to a strategic review.

What Happened: Turtle Beach reported second-quarter revenue of $41.3 million, down from $78.6 million in the prior year’s second quarter. Analysts were estimating revenue of $49.2 million for the quarter, according to Benzinga Pro.

The company cited the comparable period coming at a time of stay-at-home orders and stimulus payments.

The company reported a net loss of 77 cents, missing a Street estimate of a loss of 47 cents per share.

“While the underlying trends in the gaming market remain strong, our second quarter results were impacted by ongoing macroeconomic headwinds impacting many companies,” Turtle Beach CEO Juergen Stark said.

Along with earnings, the company also updated on its review of strategic alternatives. The company contacted and held discussions with 109 potential strategic and financial parties.

Turtle Beach announced it would end the discussions and remain a standalone business. The company said market conditions and a challenging financial environment impacted the potential of a deal.

The company will stop actively pursuing outreach but will welcome any opportunities that arise.

Related Link: Exclusive: 2022 Esports Listmakers Are Driving Gaming Forward 

What’s Next: The company updated its full-year guidance for revenue to come in a range of $250 million and $275 million. Analysts are estimating full-year revenue of $362.3 million.

Turtle Beach points to improving conditions in the second half of the year, led by new product launches and a strong holiday season.

HEAR Price Action: Turtle Beach shares are down 35% to $9.09 in after-hours trading.

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Posted In: EarningsNewsGuidanceAfter-Hours CenterMoversTrading IdeasJuergen Starkvideo game accessoriesVideo Game Stocksvideo gameswhy it's moving
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