Wedbush Remains Positive Following Turtle Beach's (HEAR) 4Q Pre-Announcement - PT to $2.50

Wedbush maintained an Outperform rating on Turtle Beach Corporation (NASDAQ: HEAR), and cut the price target to $2.50 (from $5.00), following the company's pre-announced 4Q earnings results. Results were largely in-line with its previously lowered expectations. Q4 headset revenue is expected to be $82 – 84 million, in-line with the revised outlook provided last week, but below the earlier range of $82 – 92 million provided in November.

Analyst Michael Pachter commented, "Before the market open on Wednesday, Turtle Beach pre-announced Q4:15 results that were largely in-line with its previously lowered expectations. Q4 headset revenue is expected to be $82 – 84 million, in-line with the revised outlook provided last week, but below the earlier range of $82 – 92 million provided in November. FY:15 headset revenue is expected to be $160 – 162 million. New-gen headset sales increased 31% y-o-y in Q4 and 24% in FY:15, while old-gen headset sales accounted for under 12% of total revenue in Q4 after decreasing by over $40 million in FY:15. Q4 headset gross margins are expected to be 31%. HyperSound revenues were $0.9 million in FY:15 after a late-October launch for HyperSound Clear in the U.S., also in-line with the revised outlook, but below guidance provided in November of $2 million for Q4 and $2 – 3 million for FY:15."

For an analyst ratings summary and ratings history on Turtle Beach Corporation click here. For more ratings news on Turtle Beach Corporation click here.

Shares of Turtle Beach Corporation closed at $1.47 yesterday.

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