Turtle Beach (HEAR) Continues to Ride the Gaming Wave As Shares Are Up 45% YTD

The PRISM Consumer Products Index company Turtle Beach Corp (HEAR) is known for its audio technology as it markets gaming headset solutions. Since the start of the year, shares have seen a nice appreciation upwards around 45%. The company’s share price embarked into mid-teens level back in March when it announced the acquisition of Performance Designed Products (PDP) to strengthen their profitability and meaningfully enhance the size of the company. Additionally, Turtle Beach launched a modified Dutch Tender offer to repurchase up to $30M in value of its common stock between $13.75-$15 per share.  Since March the company has been trading between $14-$17 and has issued some positive news.

Last week, the company announced Q2 earnings that missed on EPS ($0.35) vs FactSet ($0.30) but beat on revenues $76.5M vs FactSet $70.7M as it raised its full year outlook. On its conference call management cited its retail inventory was balanced with no restocking to be expected for Q3, revenue shifts between Q3 an Q4 are to be expected due to late holiday shopping trends, the PDP acquisition integration was ahead of schedule and PDP that inventory costs of $900K-$1M are anticipated through the end of the year.

As the company continues to see increased demand and gaming accessories outperforming the broader market, Turtle Beach is making waves in the gaming space and its investors are liking the sound of it.