Corsair Gaming Stock Slides As Consumers Hold Out For New GPUs: What Investors Need To Know

Corsair Gaming Inc CRSR shares are trading lower in Thursday’s after-hours session after the company reported preliminary results for the second quarter.

What Happened: After the market close on Thursday, Corsair announced that it expects to report second-quarter revenue of approximately $261 million versus estimates of $319.977 million, according to Benzinga Pro.

“The market for high-end self-built gaming PCs continues to be softer than expected as we are seeing consumers waiting for new GPUs to be launched at year-end. This has been somewhat offset by good activity in the entry-level market where gamers are using lower-cost GPUs and CPUs, but the net effect of this has been to lower market ASPs for some of the component categories we sell,” said Andy Paul, CEO of Corsair.

“Channel inventory has generally been reduced for our products, and so during Q2 we sold into the channel substantially less than was sold out to consumers. Overall in the Gaming Components and Systems segment, this resulted in disappointing results for revenue and margins, but we do expect this to recover in the second half of 2024 and 2025.”

Corsair scheduled its second-quarter results for Aug. 1. The company said it will hold a conference call to discuss its quarterly performance at 5 p.m. ET that day.

CRSR Price Action: Corsair Gaming shares were down 7.41% at $9 in after-hours trading after falling more than 5% in the regular session, according to Benzinga Pro.

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Photo: Timur Kozmenko from Pixabay.