What happened
Shares of Turtle Beach (HEAR -2.96%) were trading down 16.8% as of 1:43 p.m. ET on Thursday. The gaming-peripherals maker delivered disappointing fourth-quarter earnings results, with revenue and profits falling compared to year-ago totals.
So what
For the full year, revenue increased by 1.7% to $366 million. However, earnings per share (EPS) fell to $0.97, down from $2.37 in 2020. While the revenue was the highest in the company's history, the business didn't end the year with any momentum.
Q4 revenue came in at $109.4 million, down from $132.9 million in the year-ago quarter. Net profit was $4.5 million, down from $16.3 million.
Management characterized the market for gaming peripherals as strong, but longer transit times and actions taken to mitigate supply-chain obstacles clearly left some sales on the table.
Image source: Getty Images.
Now what
Despite the sluggish performance, CEO Juergen Stark remains optimistic about where Turtle Beach is headed:
We continue to believe that the gaming market remains the market to be in and we expect pent-up consumer demand for the latest Xbox and PlayStation consoles to result in strong hardware and peripheral sales over the next several years as supply constraints ease, new games emerge and gamers level up their gaming accessories.
Turtle Beach gained market share in core PC markets and accessories, with rapid growth in the PC peripherals business. That is impressive for a highly competitive market.
Turtle Beach is pursuing an $8.8 billion addressable market for its products, but the near-term upside might be limited. Management's guidance calls for flat revenue growth in 2022, while analysts expect full-year earnings to be only slightly up from 2021 levels.
