HEAR - Turtle Beach Corporation

NasdaqGS - NasdaqGS Real Time Price. Currency in USD
8.59
-0.22 (-2.50%)
At close: 4:00PM EST
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Previous Close8.81
Open8.78
Bid8.55 x 800
Ask8.90 x 800
Day's Range8.50 - 8.80
52 Week Range8.25 - 19.00
Volume437,425
Avg. Volume554,276
Market Cap124.703M
Beta (3Y Monthly)1.52
PE Ratio (TTM)5.72
EPS (TTM)1.50
Earnings DateNov 7, 2019
Forward Dividend & YieldN/A (N/A)
Ex-Dividend DateN/A
1y Target Est18.20
  • Thomson Reuters StreetEvents

    Edited Transcript of HEAR earnings conference call or presentation 7-Nov-19 10:00pm GMT

    Q3 2019 Turtle Beach Corp Earnings Call

  • Logitech Stock Needs to Find a New Catalyst
    InvestorPlace

    Logitech Stock Needs to Find a New Catalyst

    Not that long ago, electronics and accessories manufacturer Logitech (NASDAQ:LOGI) was a popular short target. As recently as early 2016, even with the LOGI stock price at a relatively modest $15 or so, over 15% of its shares outstanding were sold short. Logitech stock looked cheap on a fundamental basis, but bears bet against LOGI anyway.Source: Somphop Krittayaworagul / Shutterstock.com The short thesis made some sense. At the time, roughly half of Logitech's revenue came from computer keyboards and computer mice. Meanwhile, PC (personal computer) unit sales were declining as consumers adopted smartphones as well as tablets like Apple's (NASDAQ:AAPL) iPad.As PC unit sales fell, bears argued, so too would sales of Logitech's accessories for those computers. With roughly half of its revenue headed in the wrong direction, Logitech's earnings would drop, they argued. And even after excluding some unfavorable items, its earnings per share was below $1 in fiscal 2016. That indicated that the LOGI stock price easily could dip below $10.InvestorPlace - Stock Market News, Stock Advice & Trading TipsThat thesis didn't play out at all. The company's revenues from devices for PCs actually kept increasing. Its margins improved. Categories like Gaming and Video Collaboration helped drive its revenue growth. Not only did its profits fail to decline, but its earnings per share more than doubled between fiscal 2016 and fiscal 2019. Logitech stock at one point had tripled, as shorts scrambled to cover. Barely 1% of its shares outstanding now are sold short. * 10 Cheap Stocks to Buy Under $10 Since the beginning of 2018, however, the LOGI stock price has stalled out. One key reason for the weakness is that aspects of the old short case seem pertinent again. Logitech's growth still looks solid, but for LOGI stock to resume its upward climb, the company needs to launch new products. Logitech StockOne potential source of concern is that Logitech remains heavily reliant on PCs. In FY19, mice, keyboards, and PC webcams still drove a combined 43% of its sales.The combined revenue from those categories increased 6% in FY19. But they've grown less than 1% in the first half of fiscal 2020. Meanwhile, consumer demand for PCs remains "very weak", as research firm Gartner put it in July. The Microsoft (NASDAQ:MSFT) Windows 10 refreshment cycle has boosted demand from businesses, but that tailwind, too, may fade.To be fair, currency fluctuations may have negatively impacted this year's revenue: for Logitech as a whole, revenue growth excluding currency fluctuations in the first half was over two percentage points higher than the reported total. And Logitech CEO Bracken Darrell has repeatedly noted that the driver of Logitech's PC accessories demand isn't unit sales, but rather unit usage.After all, part of the weakness of PC sales is due to the fact that PCs are lasting longer, while new desktops no longer offer the same improvements they did a decade ago. That's a benefit for Logitech, not a problem. Consumers who use computers longer and more often will buy Logitech's accessories to replace old equipment and/or improve their experience.Still, the growth of the company's revenue from products for PCs is decelerating meaningfully even excluding currency fluctuations. And if 43% of the company's revenue is growing minimally or not at all, that's a significant negative factor for LOGI stock. What Will boot LOGI Stock?With Logitech stock trading at a still-reasonable valuation, flattish revenue from the PC categories isn't a death knell. It's not even a good reason to consider shorting LOGI stock at this point.But now the rest of the company's business is showing some weakness as well. Most notably, Logitech's Gaming products had been a huge source of growth: their sales more than tripled between fiscal 2015 and 2019. In 2019, however, their revenue is flat.That's partly because of a difficult comparison. Last year's release of the free Fortnite game by Epic Games shook up the video game industry -- and led to a surge in sales of gaming headsets like those manufactured by Logitech's Astro Gaming unit. The top line of Astro rival Turtle Beach (NASDAQ:HEAR) should drop about 17% this year, even with some help from an acquisition.Going forward, the growth of LOGI's Gaming unit is likely to decelerate from the torrid rates posted in years past. And that leaves the company reliant on a category like Video Collaboration, which is roughly 10% of its trailing 12-month sales, for growth.So far, Logitech has managed to find ways to drive growth despite flattish end markets. But the obvious worry is that it won't be able to continue to do so forever. Unless Gaming resumes growing meaningfully again in FY21, going forward its sales are not going to increase at the same, high-single-digit percentage rate seen in the past few years. And that might be a problem for LOGI stock. Margins and the LOGI Stock PriceLogitech stock at this point seems like a revenue story. Its gross margins have improved, but they already are above the company's previous target of 35%-37%. As CFO Nate Olmstead noted on the company's Q2 earnings conference call, Logitech plans to reinvest additional profits that come from higher gross margins in marketing and research and development. As a result, LOGI expects its operating margins, excluding currency fluctuations, to be roughly flat in FY20.A key reason why the LOGI stock price tripled is that Logitech has been a company that has been running on all cylinders. Its CEO has done a fantastic job over that stretch. But the counterintuitive problem with a company operating at peak efficiency is that there's little room for improvement going forward. Logitech provided operating margin guidance this year of about 13%. I'm skeptical about the company's ability to surpass that guidance.And so what can increase the company's earnings per share? Logitech does have a cash hoard of over $500 million and no debt, so it could make a bigger acquisition after years of buying smaller firms like Astro and software play Streamlabs. But M&A aside, it does seem like its margins have peaked and its revenue growth is at risk of decelerating.Admittedly, the LOGI stock price incorporates that to some extent. Excluding the company's cash, LOGI stock trades for about 18x FY20 consensus EPS estimates. But if annual earnings growth slows to 5% or so, that multiple is reasonable. And if Logitech stumbles at all, or its PC revenues finally start declining, the stock can get cheaper in a hurry. Logitech Needs Something That Will Excite InvestorsNone of this means that LOGI stock is worth shorting. Again, its growth has been impressive, and it's usually a bad idea to bet against well-run companies.But Logitech stock has traded sideways for some 20 months now. Resistance has held of late at the current LOGI stock price. To drive a breakout, Logitech simply needs to get investors excited -- and it's tough to see how the company can do that.A resurgence of its Gaming unit could help, though I'd rather own Turtle Beach stock if that scenario unfolds. (I personally have taken a bullish position in Turtle Beach using sold puts.) LOGI's Video Collaboration unit can grow through a partnership with Zoom Video Communications (NASDAQ:ZM), though with ZM stock down 37% from its highs it, too, might be a more attractive and more direct play than LOGI stock.Regardless, those two categories only drove about one-third of Logitech's sales in the first half of the fiscal year. The other two-thirds of the business -- PC and tablet accessories, speakers, and audio equipment -- pretty much "is what it is" at this point. And what it is is a low-growth, if attractive, portfolio.That might be enough to cause LOGI stock to rise. But it's probably not enough to enable LOGI stock to outperform. To get the P/E multiple back above 20 and the stock back above $50, Logitech needs to show it can return to at least double-digit-percentage profit growth. The problem at the moment is that's it difficult to see how the company can do that.As of this writing, Vince Martin has a bullish position in HEAR stock via options. He has no positions in any other securities mentioned. More From InvestorPlace * 2 Toxic Pot Stocks You Should Avoid * 10 Cheap Stocks to Buy Under $10 * These 10 Stocks to Buy Make the Perfect 'Retirement' Portfolio * 5 Streaming Stocks to Buy for Huge Upside Over the Next Decade The post Logitech Stock Needs to Find a New Catalyst appeared first on InvestorPlace.

  • Simply Wall St.

    When Should You Buy Turtle Beach Corporation (NASDAQ:HEAR)?

    Turtle Beach Corporation (NASDAQ:HEAR), which is in the consumer durables business, and is based in United States...

  • Turtle Beach (HEAR) Reports Q3 Loss, Tops Revenue Estimates
    Zacks

    Turtle Beach (HEAR) Reports Q3 Loss, Tops Revenue Estimates

    Turtle Beach (HEAR) delivered earnings and revenue surprises of 37.93% and 8.16%, respectively, for the quarter ended September 2019. Do the numbers hold clues to what lies ahead for the stock?

  • PR Newswire

    Turtle Beach Reports Third Quarter 2019 Results

    SAN DIEGO , Nov. 7, 2019 /PRNewswire/ -- Turtle Beach Corporation  (Nasdaq: HEAR), a leading gaming audio and accessory brand, reported financial results for the third quarter ended September 30, 2019 ...

  • Benzinga

    Turtle Beach's Q3 Earnings Preview

    Turtle Beach (NASDAQ: HEAR ) announces its next round of earnings this Thursday, November 7. Here is Benzinga's everything-that-matters guide for the Q3 earnings announcement. Earnings and Revenue Based ...

  • Fastly (FSLY) to Report Q3 Earnings: What's in the Cards?
    Zacks

    Fastly (FSLY) to Report Q3 Earnings: What's in the Cards?

    Fastly's (FSLY) third-quarter 2019 results are expected to reflect solid demand for its edge computing platform and expanded clientele.

  • PR Newswire

    Turtle Beach Announces Retirement Of Chairman Ronald Doornink; Chief Executive Officer Juergen Stark Named Chairman

    SAN DIEGO, Nov. 6, 2019 /PRNewswire/ -- November 6, 2019 – Turtle Beach Corporation (HEAR), a leading gaming accessory brand, today announced that Ronald Doornink, who has served as the chairman of the Company's board of directors since 2010, has decided to step down as chairman and to retire from the board at the end of 2019. The board has unanimously appointed current CEO and board member Juergen Stark to succeed Doornink as chairman effective January 1, 2020. Mr. Stark has been the Company's CEO and a member of the board since 2014, and will continue as CEO.

  • Will Lower Revenues Mar Turtle Beach (HEAR) Q3 Earnings?
    Zacks

    Will Lower Revenues Mar Turtle Beach (HEAR) Q3 Earnings?

    Turtle Beach (HEAR) 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.

  • Turtle Beach (HEAR) Outpaces Stock Market Gains: What You Should Know
    Zacks

    Turtle Beach (HEAR) Outpaces Stock Market Gains: What You Should Know

    In the latest trading session, Turtle Beach (HEAR) closed at $11.03, marking a +1.38% move from the previous day.

  • Earnings Preview: Turtle Beach (HEAR) Q3 Earnings Expected to Decline
    Zacks

    Earnings Preview: Turtle Beach (HEAR) Q3 Earnings Expected to Decline

    Turtle Beach (HEAR) doesn't possess the right combination of the two key ingredients for a likely earnings beat in its upcoming report. Get prepared with the key expectations.

  • Zacks.com featured highlights include: BMC Stock, NVR and Turtle Beach
    Zacks

    Zacks.com featured highlights include: BMC Stock, NVR and Turtle Beach

    Zacks.com featured highlights include: BMC Stock, NVR and Turtle Beach

  • Turtle Beach Corporation To Report Third Quarter 2019 Financial Results On Thursday, November 7, 2019
    PR Newswire

    Turtle Beach Corporation To Report Third Quarter 2019 Financial Results On Thursday, November 7, 2019

    SAN DIEGO , Oct. 24, 2019 /PRNewswire/ -- Turtle Beach Corporation (NASDAQ: HEAR), the leading gaming headset and audio accessory brand , announced it will report financial results for the third quarter ...

  • Believe in DuPont Analysis? Buy These 3 Top-Ranked Stocks
    Zacks

    Believe in DuPont Analysis? Buy These 3 Top-Ranked Stocks

    DuPont technique helps investors to analyze basic ROE at an advanced level. Bet on these three stocks.

  • eSports ETFs Seeking to Win Over Investors
    Investopedia

    eSports ETFs Seeking to Win Over Investors

    Video games and electronic sports may be designed with entertainment in mind, but they have also proven themselves to be big business as well. With video game sales increasing at an annual rate of close to 11%, even as similar industries have seen declines, there appears to be ample room for investors to invest in the entertainment of others in one form or another. It's no surprise, then, that there have already been several exchange-traded funds (ETFs) which have launched with a specific focus on the video gaming industry.

  • Is Turtle Beach (HEAR) a Great Value Stock Right Now?
    Zacks

    Is Turtle Beach (HEAR) a Great Value Stock Right Now?

    Here at Zacks, our focus is on the proven Zacks Rank system, which emphasizes earnings estimates and estimate revisions to find great stocks. Nevertheless, we are always paying attention to the latest value, growth, and momentum trends to underscore strong picks.

  • Prospects Look Healthy for Communication Components Industry
    Zacks

    Prospects Look Healthy for Communication Components Industry

    Prospects Look Healthy for Communication Components Industry

  • Turtle Beach Introduces Kone Pure Ultra PC Gaming Mouse
    Zacks

    Turtle Beach Introduces Kone Pure Ultra PC Gaming Mouse

    Turtle Beach's (HEAR) ROCCAT's Kone Pure Ultra PC gaming mouse will be available in the United States this winter for a list price of $69.99.

  • ROCCAT Launches The Kone Pure Ultra - A Fully Updated Light Weight Variant Of Its Acclaimed Kone Series PC Gaming Mice
    PR Newswire

    ROCCAT Launches The Kone Pure Ultra - A Fully Updated Light Weight Variant Of Its Acclaimed Kone Series PC Gaming Mice

    SAN DIEGO, Oct. 10, 2019 /PRNewswire/ -- ROCCAT, Turtle Beach's (HEAR) Hamburg, Germany-based PC accessories division today announced the release of the Kone Pure Ultra PC gaming mouse. The Kone Pure Ultra is your favorite mouse, reborn with the latest tech and a new ultra-light weight design. ROCCAT's Kone Pure has become a mouse of choice for many performance-focused gamers, and the Kone Pure Ultra keeps the original ergonomic shape of its predecessor, including the strategic button placement, crisp "click" feeling, and beloved Titan Wheel, but with a much lighter weight coming in at a low 66 grams, making it one of the lightest PC gaming mice on the market.

  • Diversify Your Portfolio with a Return on Equity Strategy Amid Economic Slowdown Fears
    Zacks

    Diversify Your Portfolio with a Return on Equity Strategy Amid Economic Slowdown Fears

    Diversify Your Portfolio with a Return on Equity Strategy Amid Economic Slowdown Fears

  • Logitech (LOGI) Ups Efforts to Strengthen Gaming Portfolio
    Zacks

    Logitech (LOGI) Ups Efforts to Strengthen Gaming Portfolio

    In an attempt to boost its foothold in the gaming market, Logitech (LOGI) bolsters its product portfolio with the launch of a new keyboard designed for gamers.

  • Zacks.com featured highlights include: Ingles Markets, Radiant Logistics, Hanger, Turtle Beach and SkyWest
    Zacks

    Zacks.com featured highlights include: Ingles Markets, Radiant Logistics, Hanger, Turtle Beach and SkyWest

    Zacks.com featured highlights include: Ingles Markets, Radiant Logistics, Hanger, Turtle Beach and SkyWest

  • 5 Top Picks With Wide Net Profit Margin to Boost Portfolio
    Zacks

    5 Top Picks With Wide Net Profit Margin to Boost Portfolio

    Let's consider five stocks with a sizable net profit margin to create a successful portfolio.

  • Bet on These 5 High-Flying Stocks With Increasing Cash Flows
    Zacks

    Bet on These 5 High-Flying Stocks With Increasing Cash Flows

    Looking beyond profits to a company's cash position will be far more rewarding as this highlights its true financial health.

  • Give Any Wired Gaming Headset Access To Turtle Beach's All-New Control Studio & Experience Waves Nx 3D Surround Sound With The Atlas Edge PC Audio Enhancer - Now Available
    PR Newswire

    Give Any Wired Gaming Headset Access To Turtle Beach's All-New Control Studio & Experience Waves Nx 3D Surround Sound With The Atlas Edge PC Audio Enhancer - Now Available

    SAN DIEGO, Oct. 3, 2019 /PRNewswire/ -- Turtle Beach (HEAR), a leading gaming audio and accessory brand, today announced the all-new Atlas Edge PC Audio Enhancer is available globally at participating retailers and from www.turtlebeach.com. Offering premium PC gaming audio and all the deep sound customization savvy PC gaming enthusiasts could ask for, the Atlas Edge plugs into an available USB port and gives any wired headset an instant, customizable audio advantage through Turtle Beach's robust Control Studio™ software suite, which features Waves Nx® audio technology and Waves Maxx sound technology to transform sound from any PC game into a full panoramic 3D audio experience.