Turtle Beach Shares are Booming – Is it Time to Buy?

Turtle Beach Shares are Booming

Turtle Beach Shares are Booming. Turtle Beach Corporation (NASDAQ:HEAR) share price rose more than 60% after announcing its outstanding financial numbers for the first quarter this year. It has topped consensus sales estimates by $1 million. The leading, multiplayer gaming headset and audio accessory brand, supports its sales growth through growth initiatives and improving market share.   

Turtle Beach shares are booming

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Turtle Beach total sales increased 185% over the past year period. Its new games including Fortnite and PlayerUnknown’s Battlegrounds led it to post substantial sales gains since the start of this year.

The company’s revenue growth has also outperformed industry trends. The overall NPD’s market rose 77.6% on a sell-through basis in the last three months, while Turtle Beach generated growth of 110.3% during the same period.

Its gross margin also doubled from the past year period. The gross margin received support from the less promotional environment and higher volumes driving fixed-cost leverage. Robust sales and gross profit growth have led the company to post record earnings of $0.16 per share in the first quarter.

Outlook and Valuations Supports Uptrend

The company has also enhanced trader confidence by presenting the rosy outlook for the full year. Turtle Beach expects its second-quarter revenue to enlarge 151% over the past year period. The full-year revenue is likely to increase 37% over fiscal 2017. The company expects net income to hover around $0.95 per share compared to the loss of 0.12 per share.

“We expect the momentum from this strong market to continue and have raised our 2018 financial outlook accordingly”said Juergen Stark, CEO, Turtle Beach.

The company’s stock currently trades around $11 a share – with the market cap of $155 million. The stock has the 52-week range of $1.64–$13.88. Analysts expect the stock to hit new all-time high in the days to come. Its valuations are also trading below the industry average despite the recent rally. Turtle Beach stock trades around 20 times to earnings compared to the industry average of 2 times. 

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