Turtle Beach Trades Higher After Q1 Earnings Beat

Turtle Beach Corp HEAR shares are higher after reporting a first-quarter earnings beat Wednesday after the close.

The video game headset maker reported earnings of 9 cents per share, beating estimates by 6 cents. Sales came in at $44.8 million, beating estimates by nearly $3 million.

"We reported another record quarter of revenue growth, which, combined with strong prior year receivables, allowed us to grow our cash position to all-time highs with zero debt," said CEO Juergen Stark.

"Following a year of unprecedented growth, we continue to expect that industry-wide sales of console gaming headsets will decline year-over-year in 2019, but also believe that the base of gamers seeking high-quality headsets for both console and PC has never been higher and will lead to resumed growth in 2020 and beyond," Stark said in the press release.

"We are maintaining our prior guidance for 2019, and expect the year to produce strong revenue and cash flow. We also continue to expect our revenue to grow over the long-term at a compounded rate of 10%-20%. The recent decision by our board of directors to authorize the repurchase of up to $15 million of our stock over the next two years signals our continued confidence in our prospects."

Highlights

• Net revenue increase 10 percent year-over-year
• Gross Margin was 33 percent
• Net income increased 56 percent year-over-year

Turtle Beach shares were up 5.5 percent at $11.40 in after-hours trading. The stock closed Wednesday's session at $10.81 per share..