Corsair Gaming, Inc ( CRSR ). is moving lower on Friday following preliminary results which came in below estimates.

What Happened: On Thursday, the gaming company reported preliminary second quarter revenue at $261 million versus analyst estimates of $319.977 million. The company’s chief executive officer explained that the market for high-end custom gaming PCs is weaker than expected because consumers are waiting for new GPUs to be released at the end of the year.

“Channel inventory has generally been reduced for our products, and so during Q2 we sold into the channel substantially less than was sold out to consumers,” said Corsair Gaming ( CRSR ) CEO Andy Paul.

“Overall in the Gaming Components and Systems segment, this resulted in disappointing results for revenue and margins, but we do expect this to recover in the second half of 2024 and 2025.”

Following the preliminary fiscal earnings release, Baird analyst Colin Sebastian maintained Corsair Gaming ( CRSR ) with a Neutral and lowered the price target from $14 to $10. Lastly, the company is expected to release 2024 fiscal year second quarter results on August 1 after the market closes.

Related Link: Nano Nuclear Falls After Short Report Calls Company’s Timelines ‘Laughable,’ Goals ‘Out Of Touch With Reality’

CRSR Price Action: At the time of writing, Corsair Gaming ( CRSR ) shares are trading 11.8% lower at $8.57 per data from Benzinga Pro.

Image: Courtesy of Corsair Gaming ( CRSR )