Please ensure Javascript is enabled for purposes of website accessibility

Is This an Overreaction to Corsair's Earnings?

By Jose Najarro – Aug 4, 2021 at 10:30AM

You’re reading a free article with opinions that may differ from The Motley Fool’s Premium Investing Services. Become a Motley Fool member today to get instant access to our top analyst recommendations, in-depth research, investing resources, and more. Learn More

Corsair's stock price dropped more than 5% after it reported earnings.

Corsair (CRSR 1.22%) reported earnings on August 3 before the market opened. In today's video I look at Corsair's earnings report and talk about some of the strong and weak points presented to investors. Here are some highlights from the video:

  1. Corsair reported 24% year-over-year (YOY) revenue growth in second-quarter 2021 earnings. The increase was driven by 40.9% YOY revenue growth in its gamer and creator peripherals segment and 17.6% YOY revenue growth in its gaming components and systems segment.
  2. One of the most prominent yellow flags investors might have is that Corsair's adjusted earnings before interest, taxes, depreciation, and amortization (EBITDA) grew only 4% YOY even though revenue grew 24% YOY. The main reason is an increase in logistics costs, including ocean and air freight. 
  3. Corsair ended the quarter with total debt of roughly $274 million and expects to reduce its debt by $100 million in the full year 2021. Corsair also provided investors with no change in guidance and expects to see YoY revenue growth in the low teens for full-year 2021.

Click the video below for my full thoughts and analysis. 

*Stock prices used were the midday prices of August 3, 2021. The video was published on August 3, 2021.

Jose Najarro has no position in any of the stocks mentioned. The Motley Fool has no position in any of the stocks mentioned. The Motley Fool has a disclosure policy. Jose is an affiliate of The Motley Fool and may be compensated for promoting its services. If you choose to subscribe through his link, he will earn some extra money that supports his channel. His opinions remain his own and are unaffected by The Motley Fool.

Stocks Mentioned

Corsair Gaming, Inc. Stock Quote
Corsair Gaming, Inc.
$17.50 (1.22%) $0.21

*Average returns of all recommendations since inception. Cost basis and return based on previous market day close.

Related Articles

Premium Investing Services

Invest better with The Motley Fool. Get stock recommendations, portfolio guidance, and more from The Motley Fool's premium services.