Turtle Beach (NASDAQ: HEAR) reported Q1 EPS of $0.16, $0.18 better than the analyst estimate of ($0.02). Revenue for the quarter came in at $40.9 million versus the consensus estimate of $39.83 million.

Increased 2018 Outlook

For the second quarter of 2018, Turtle Beach expects net revenue to increase 151% to approximately $48 million compared to $19.1 million in the second quarter of 2017. Net loss is expected to improve to approximately $(0.05) per share compared to a net loss of $(0.57) per share in the second quarter of 2017. Adjusted EBITDA is expected to improve to approximately $2.5 million compared to $(2.8) million in the second quarter of 2017. Other than the aforementioned reduction in non-cash interest expense, the second quarter 2018 earnings per share estimate excludes any other effects of the accounting treatment for the retirement of the Series B Preferred Stock, which the Company does not expect to have an adverse effect on net income or adjusted EBITDA.

For the full year 2018, Turtle Beach now expects net revenue to increase 37% to approximately $205 million (up from $157 million in its March outlook) compared to $149.1 million in 2017. The Company is approaching its full year outlook estimating second half sell-through will be roughly in-line with last year, which the Company expects is appropriately conservative as it continues to track the year-to-date sell through increases and refines its view of the expected longer-term impact. Net income in 2018 is now expected to improve to approximately $0.95 per share (up from a net loss of $(0.12) per share in its March outlook) based upon 14.2 million estimated fully diluted shares outstanding. This is compared to a net loss of $(0.26) per share in 2017. Adjusted EBITDA in 2018 is now expected to more than double to approximately $26 million (up from $12 million in its March outlook) and includes several million dollars of expected investments intended to drive future growth. This compares to $11.6 million in adjusted EBITDA in 2017. Other than the aforementioned reduction in non-cash interest expense, the full year 2018 earnings per share estimate excludes any other effects of the accounting treatment of the retirement of the Series B Preferred Stock in the second quarter of 2018, which the Company does not expect to have an adverse effect on net income or adjusted EBITDA.

For earnings history and earnings-related data on Turtle Beach (HEAR) click here.