However, the bottom line is likely to face an increase in costs and expenses arising due to the promotions and marketing of the products. Gaming headsets, which are part of a growing global gaming market sized at over $150 billion, represents more than a $2.7 billion global market, or more than 70% of the total peripherals market.
The company’s gaming headset business is seasonal with a significant portion of sales and profits typically occurring around the holiday period. Historically, more than 45% of headset business revenues are generated during the period from September through December as new headsets are introduced and consumers engage in holiday shopping.
Analysts expect the company to report a loss of $0.20 per share on revenue of $41.97 million for the second quarter. In comparison, during the previous year quarter, Turtle Beach posted a profit of $0.40 per share on revenue of $60.8 million. The company has surprised investors by beating analysts’ expectations in all of the past four quarters.
For the first quarter, Turtle Beach reported a 56% jump in earnings driven by a gain from the mark-to-market adjustment of the financial instrument obligation related to the non-cash settlement of the Series B Preferred stock in April 2018. Net revenue increased by 10% year-over-year.
For the full year 2019, the company expects net revenue in the range of $240 million to $248 million and earnings in the range of $0.70 to $0.90 per share. Adjusted earnings are anticipated to be in the range of $0.90 to $1.10 per share. Adjusted EBITDA is predicted to be in the range of $27 million to $31 million.