Overview

* Turtle Beach ( TBCH ) Q3 revenue slightly misses analyst expectations

* Net income for Q3 misses analyst estimates

* Gross margin improved to 37.4%, up nearly 120 basis points yr/yr

Outlook

* Turtle Beach ( TBCH ) reiterates full-year revenue guidance of $340 mln to $360 mln

* Company maintains full-year Adjusted EBITDA guidance of $47 mln to $53 mln

Result Drivers

* COST OPTIMIZATION - Gross margin improved nearly 120 basis points due to ongoing cost optimization initiatives

* DEBT REFINANCING - Refinancing reduced cost of capital by over 450 basis points, saving $2 mln annually in interest

* PRODUCT EXPANSION - Launched over 40 new products, including licensed PlayStation and Nintendo accessories

Key Details

Metric Beat/Mis Actual Consensu

s s

Estimate

Q3 Slight $80.46 $80.50

Revenue Miss* mln mln (5

Analysts

)

Q3 EPS $0.08

Q3 Net Miss $1.72 $2.28

Income mln mln (5

Analysts

)

Q3 Gross 37.40%

Margin

*Applies to a deviation of less than 1%; not applicable for per-share numbers.

Analyst Coverage

* The current average analyst rating on the shares is "buy" and the breakdown of recommendations is 5 "strong buy" or "buy", 1 "hold" and no "sell" or "strong sell"

* The average consensus recommendation for the computer hardware peer group is "buy"

* Wall Street's median 12-month price target for Turtle Beach Corp ( TBCH ) is $20.00, about 20.7% above its November 5 closing price of $15.87

* The stock recently traded at 13 times the next 12-month earnings vs. a P/E of 15 three months ago

Press Release:

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(This story was created using Reuters automation and AI based on LSEG and company data. It was checked and edited by a Reuters journalist prior to publication.)