Turtle Beach share drops after gaming equipment maker calls for lower profits

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Turtle Beach Corp. HEAR,
-0.14%
the stock fell more than 5% in the extended session on Wednesday after the maker of headsets and other gaming accessories said it expects weaker quarterly profits and called for a market “low” for video game consoles, as new consoles are expected to hit stores later in the year. Turtle Beach said it expects fourth quarter revenue of between $ 100 million and $ 102 million, compared to $ 111.3 million in the fourth quarter of 2018. Preliminary adjusted EPS for the fourth quarter is expected to be between $ 67 million. and 78 cents per share. , down from $ 1.33 in the fourth quarter of 2018. Analysts polled by FactSet expect fourth-quarter adjusted earnings of 85 cents per share on sales of $ 107 million. Turtle Beach is expected to release its results on March 23. “We are very excited about the new consoles from Sony and Microsoft, which are scheduled for release in the fourth quarter of this year,” Managing Director Juergen Stark said in a statement. “We expect the console gaming market to be weak during this transition period until the new consoles are available at retail, and then we expect the market to return to growth in 2021,” and the company anticipates “continued growth this year in our PC gaming accessories sales and plan to increase our investment in this product area to position us for long-term success in the PC market.” Shares of Turtle Beach closed the regular trading session up 0.9%.


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