Turtle Beach (HEAR) To Report Q2 Earnings: What Lies Ahead?
Zacks Investment Research | Aug 06, 2019 06:45AM ET
Turtle Beach Corporation (NASDAQ:HEAR) is scheduled to report second-quarter 2019 results after the closing bell on Aug 8. In the last reported quarter, the company delivered a positive earnings surprise of 333.3%. Notably, Turtle Beach surpassed the Zacks Consensus Estimate in each of the last four quarters, the average beat being 613.3%.
The audio technology company is poised to benefit from solid product performance and market traction, driven by innovation, quality products, strong brand and retail partnerships.
Let’s find out how things are shaping up prior to the announcement.
Factors to Consider
During the quarter, Turtle Beach unveiled Recon 70 gaming headset with powerful audio and microphone to replace its iconic Recon 50, which was the best-selling product in its category in North America for the past two years. Reportedly, Recon 70 works with all the leading brands and is available in both black and white options for Xbox One and PlayStation4, and in red accented version for Nintendo.
In the to-be-reported quarter, Turtle Beach completed the acquisition of ROCCAT — a leading German PC peripherals company — for $15.6 million in cash plus up to $3.3 million in earnout payments. The strategic move marks the beginning of the next phase in the audio technology company’s expansion into the $2.9 billion market for PC gaming headsets, mice and keyboards. This is considered to be a major step in its goal of building $100 million PC gaming accessories business.
All these moves are likely to get reflected in the upcoming results. The Zacks Consensus Estimate for total revenues for the second quarter is pegged at $42 million. In the year-earlier quarter, it generated revenues of $61 million.
Earnings Whispers
Our proven model does not conclusively show that Turtle Beach will beat earnings in the second quarter as it does not possess the key components. A stock needs to have both a positive Earnings ESP Filter .
Turtle Beach Corporation Price and EPS Surprise
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