Turtle Beach Delivers Earnings and Revenue Surprises in Q2
Turtle Beach (HEAR) reported a wider-than-expected loss for its fiscal fourth quarter, hurt by lower sales of its audio products. The company said it expects to post a loss in the current quarter as well. Shares of Turtle Beach fell 11% in after-hours trading.
Turtle Beach (HEAR) reported a wider-than-expected loss for its fiscal fourth quarter, hurt by lower sales of its audio products. The company said it expects to post a loss in the current quarter as well. Shares of Turtle Beach fell 11% in after-hours trading.
Turtle Beach Delivers Earnings and Revenue Surprises in Q2
Turtle Beach Corporation, a leading audio technology company, has released its financial report for the quarter ending June 30, 2023. The report revealed a loss per share of $0.11, missing Zacks Consensus Estimate’s loss per share and the company’s loss per share from the same quarter a year ago. Adjusted for non-recurring items, the company’s loss per share for the quarter was $0.09.
The report represents an earnings surprise for the quarter, as analysts had expected the audio technology company to post a loss per share. However, the actual loss per share delivered a surprise in the last four quarters, with the company surpassing consensus EPS estimates two times.
Turtle Beach belongs to the Zacks Communication Components Industry, which posted revenue of $10.2 million for the quarter ending June 30, missing Zacks Consensus Estimate. The company’s year-ago revenue was $13.7 million. Despite missing the consensus revenue estimate, the company has topped consensus revenue estimates two times in the last four quarters.
The stock’s immediate price movement based on the recently released numbers and future earnings expectations will largely depend on the management’s commentary during the earnings call. Turtle Beach shares have declined by 30% since the beginning of the year, underperforming the S&P 500, which has gained 16% during the same period.
With Turtle Beach underperforming the market so far this year, investors may wonder what the future holds for the stock. One reliable measure to help investors address the company’s earnings outlook includes the current consensus earnings expectations for the coming quarter as well as changes lately. Empirical research shows a strong correlation between near-term stock price movement and trends in earnings estimate revisions.
Tracking revisions to earnings estimates, a tried-and-tested rate tool like Zacks Rank, has an impressive track record harnessing the power of earnings estimate revisions. Ahead of this earnings release, the estimate revision trend for Turtle Beach favors the magnitude and direction of estimate revisions, which could change following the company’s just-released earnings report. Currently, the stock carries a Zacks Rank of #3 (Hold), suggesting that shares are expected to perform in line with the market in the near future.