Turtle Beach Corporation HEAR announced that its July 2020 retail sales in North America were the highest July sales in its history, in terms of revenues and units. This is according to The NPD Group’s (U.S.-based market research company) sales data.
Turtle Beach recorded its highest unit share ever for July, with more than 50% of all console headsets sold in the previous month being its headsets. Turtle Beach is a leading gaming audio and accessory brand that offers a wide range of gaming headsets. The latest results underscore the strength of its brand amid the backdrop of a record-breaking year for the video game industry.
The company’s best-selling Recon 70 series wired headsets along with the recently-introduced Stealth 700 Gen 2 and Stealth 600 Gen 2 wireless gaming headsets positions it well to continue to lead in 2020 and beyond. Turtle Beach’s new Stealth 700 Gen 2 and Stealth 600 Gen 2 are the first cross-generation console headsets designed to work with Xbox One and Xbox Series X as well as PlayStation 4 and PlayStation 5.
They feature powerful game sound and clear chat with unparalleled comfort along with variety of features for $149.95 and $99.95, respectively. The headsets have been created to continue the legacy of the two best-selling products in their price tiers, since its launch in 2017. Turtle Beach’s Recon 70 series headsets are available in different colors for a list price of $49.95 and are compatible across all platforms.
The San Diego, CA-based audio technology company aims to expand from being the leader in console gaming headsets into becoming a top gaming accessory brand for all platforms. It is positioned to benefit from a solid product performance combined with market share gains, supported by innovation, quality products, strong brand and retail partnerships.
Further, Turtle Beach’s headsets are suited for learning and working remotely via video or audio conferencing, resulting from the COVID-19 situation. The combination of increased gaming activity, distance learning and work-from-home trends should continue to drive higher demand for headsets. The company’s ability to significantly increase its production and delivery capacity along with gain in market share is impressive.
Turtle Beach raised its outlook for 2020. The company expects revenues to be around $300 million, which is more than 30% higher than the midpoint of its previous estimated range of $224-$234 million. Adjusted EBITDA is anticipated to be almost $30 million or more than 160% above the midpoint of the prior range of $9-$14 million.
Net income per share is estimated to be almost 85 cents compared with the prior guidance of -22 cents to 3 cents. Adjusted net income per share is anticipated to be 80 cents compared with the earlier guidance of -16 cents to 9 cents.
Turtle Beach’s shares have soared 163.4% in the past six months compared with 2.7% growth of the industry.
Currently, Turtle Beach carries a Zacks Rank #2 (Buy) and has a VGM Score of A.
Some other top-ranked stocks in the broader industry are Advanced Energy Industries, Inc. AEIS, Plantronics, Inc. PLT and Clearfield, Inc. CLFD, each sporting a Zacks Rank #1 (Strong Buy). You can see the complete list of today’s Zacks #1 Rank stocks here.
Advanced Energy Industries has a trailing four-quarter earnings surprise of 39.1%, on average.
Plantronics has a trailing four-quarter earnings surprise of 540%, on average. The company’s earnings beat the Zacks Consensus Estimate in three of the last four quarters.
Clearfield has a trailing four-quarter earnings surprise of 45.6%, on average. The company’s earnings topped the consensus estimate in two of the last four quarters.
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