In Thursday trading, shares of Turtle Beach Corp. (HEAR, Financial) skyrocketed after reporting first-quarter earnings of 16 cents per share on revenue of $40.9 million, up 185% year over year. The company beat earnings estimates by 18 cents and revenue expectations by $1.07 million.
"As indicated in our pre-announcement, we delivered substantial growth in our first quarter, both relative to last year and our prior outlook," CEO Juergen Stark said. "This growth was due to market share gains on top of a very strong overall market, propelled by the successes of Fortnite and PlayerUnknown's Battlegrounds, as these games have driven new gamers into the market and much higher headset attach rates than we have historically experienced."
Further, the gross margin more than doubled to 36.8% from 15.4% in the prior-year quarter. This was driven by a less competitive promotional environment as compared to the prior-year period and higher volumes, driving fixed-cost leverage. Adjusted earnings before interest, taxes, depreciation and amortization increased $11.4 million to a record $5.3 million, compared to a loss of $6.2 million in the prior-year quarter.
Looking ahead, the company expects second-quarter net revenue to increase 151% to approximately $48 million, compared to $19.1 million in the second quarter of 2017. Further, it projects a net loss of five cents per share, compared to a net loss of 57 cents per share in the second quarter of 2017.
On the other hand, shares of Synaptics Inc. (SYNA, Financial) fell on Thursday after the company reported third-quarter 2018 earnings per share of 92 cents, beating estimates by one cent. Revenue of $394 million declined 11.3% from the prior-year quarter and fell $7.76 million short of estimates.
Revenue mix from mobile products reached 62%. Revenue from mobile products came in at $244.8 million, down 6% sequentially and 34% year over year. Revenue mix from consumer internet of things products reached 23%. Revenue from consumer IoT products totaled $89 million and included $23.6 million of revenue formerly classified as mobile revenue.
Disclosure: The author holds no positions in any stocks mentioned.
