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Corsair (CRSR) To Report Q3 Earnings: What's in the Cards?

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Corsair Gaming, Inc. CRSR is scheduled to report third-quarter 2021 results on Nov 2, 2021. In the previous quarter, the company reported a negative earnings surprise of 16.3%.

Let's take a look at how things have shaped up in the quarter.

How are Estimates Placed?

The Zacks Consensus Estimate for the third-quarter bottom line is pegged at 25 cents per share, indicating a deterioration of 53.7% from 54 cents reported in the year-ago quarter.

Corsair Gaming, Inc. Price and EPS Surprise

Corsair Gaming, Inc. Price and EPS Surprise
Corsair Gaming, Inc. Price and EPS Surprise

Corsair Gaming, Inc. price-eps-surprise | Corsair Gaming, Inc. Quote

The consensus mark for revenues is pegged at nearly $391.2 million, which suggests a decline of 14.4% from the year-ago quarter’s reported figure.

Let's take a look at how things have shaped up in the quarter.

Factors to Note

Recently, Corsair reported third-quarter preliminary results, wherein it witnessed higher demand for gear upgrades. Robust ordering season in September, backed by increased penetration of first-time gamers and streamers is likely to have aided the company’s results during the third quarter. The fact that gamers are spending more time indoors and improving their gaming skills paves a path for increased upgrades in terms of peripherals as well as gaming PCs. This along with emphasis on new product launches is likely to have aided the third-quarter top line.

For third-quarter 2021, the company anticipates net revenues of $391 million compared with $457.1 recorded in the prior-year quarter. The company also updated the 2021 annual net revenue guidance to $1.8-$1.9 billion. The net revenue guidance was slightly down from the previous view of $1.9-$2.1 billion.

We believe that the shortage of graphics cards and semiconductor along with logistics issues (increased freight costs) and port delays is likely to have affected the company’s performance in the third quarter. Also, higher investments in R&D, marketing and infrastructure coupled with a decline in memory chip prices are likely to have dented margins in the to-be-reported quarter.

What the Zacks Model Unveils

Our proven model doesn’t predict an earnings beat for Corsair this time. This is because a stock needs to have a positive Earnings ESP and a Zacks Rank #1 (Strong Buy), 2 (Buy) or 3 (Hold) for this to happen. But that's not the case here.

Earnings ESP: Corsair has an Earnings ESP of 0.00%. You can uncover the best stocks to buy or sell before they’re reported with our Earnings ESP Filter.

Zacks Rank: The company has a Zacks Rank #5 (Strong Sell).

Stocks Poised to Beat Earnings Estimates

Here are some stocks from the Zacks Consumer Discretionary space that investors may consider as our model shows that these have the right combination of elements to post an earnings beat this quarter:

Golden Entertainment, Inc. GDEN sports a Zacks Rank #1 and has an Earnings ESP of +37.45%. You can see the complete list of today’s Zacks #1 Rank stocks here.

Accel Entertainment, Inc. ACEL has a Zacks Rank #2 and an Earnings ESP of +20.00%.

Choice Hotels International, Inc. CHH has a Zacks Rank #2 and an Earnings ESP of +4.04%.


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Choice Hotels International, Inc. (CHH) : Free Stock Analysis Report

Golden Entertainment, Inc. (GDEN) : Free Stock Analysis Report

Accel Entertainment, Inc. (ACEL) : Free Stock Analysis Report

Corsair Gaming, Inc. (CRSR) : Free Stock Analysis Report

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