Will Lower Revenues Mar Turtle Beach (HEAR) Q3 Earnings?
Zacks Investment Research | Nov 04, 2019 09:02PM ET
Turtle Beach Corporation (NASDAQ:HEAR) is scheduled to report third-quarter 2019 results after the closing bell on Nov 7.
In the last reported quarter, the company delivered a positive earnings surprise of 66.7%.
It is likely to have generated lower consolidated revenues on a year-over-year basis in the third quarter, owing to the prolonged tariff war and stiff competition from low-priced competitors.
Factors at Play
During the third quarter, Turtle Beach unveiled the Elite Atlas Aero Wireless High-Performance PC Headset with immersive Waves Nx audio technology. Also, it introduced the Kain series of gaming mice with an innovative click-mechanism that registers the click signal up to 16 milliseconds faster than other available variants. Moreover, Turtle Beach launched the Elite Atlas Aero with premium sound technology and 30-hour rechargeable for full panoramic 3D audio experience.
Despite such innovative products, tariff war with China, which is one of the most important markets of the company, is likely to have harmed its supply chain management and strained margins. In addition, fierce competition from low-cost rival chipmakers is likely to have affected revenues of the company.
Key Projections
The Zacks Consensus Estimate for total revenues for the third quarter is pegged at $43 million, indicating a 41.9% decline from the year-ago reported number. The consensus estimate for earnings is currently pegged at a loss of 29 cents per share. The company reported earnings of 91 cents in the year-ago quarter.
Earnings Whispers
Our proven model does not predict an earnings beat for Turtle Beach this time around. The combination of a positive Earnings ESP Filter .
Turtle Beach Corporation Price and EPS Surprise
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