Shares of gaming and streaming-peripherals maker Corsair Gaming (NASDAQ:CRSR) are on the rise today thanks to a rosy guidance update. The stock traded 7.2% higher at 1:35 p.m. EST after reaching as high as 12.2% earlier in the day.
Citing "positive momentum in our business," Corsair CEO Andy Paul raised his full-year revenue guidance from $1.62 billion to $1.66 billion. Adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) are now expected to land near $197 million, up from $190 million. Backing out the reported results from Corsair's first three quarters, you get a fourth-quarter revenue target of roughly $513 million and adjusted EBITDA profits near $57 million.
The company is enjoying strong sales in both gaming and creator products across all price points. Paul believes that the gaming community is growing while many existing gamers also upgrade their existing gear.
Investors were quick to embrace Corsair's promising business update, and the boost expanded into an adrenaline shot for the gaming hardware industry as a whole. Fellow video-game equipment specialist Razer (OTC:RZZRY) rose as much as 2% on Tuesday, and gaming headset expert Turtle Beach (NASDAQ:HEAR) topped out at a 5.9% gain.
This stock has now gained 187% since the initial public offering (IPO) in September. The company is riding a unique wave of interest in both video games and video-streaming services. Corsair may be new to the public market, but it's a well-known player in the gaming market with more than 25 years of operating experience. Fellow Fool John Ballard owns the stock and believes that Corsair is poised for solid growth in the long term. I'm certainly keeping a close eye on this interesting growth stock in 2021 and beyond.