Turtle Beach (NASDAQ: HEAR) reported Q4 EPS of $0.83, $0.13 better than the analyst estimate of $0.70. Revenue for the quarter came in at $101.8 million versus the consensus estimate of $101.37 million.

Fourth Quarter Summary vs. Year-Ago Quarter:

• Net revenue was $101.8 million ($102.1 million in constant currency) versus $111.3 million;
• Net income of $20.4 million, or $1.29 per diluted share (includes $7.4 million benefit from the release of valuation allowances on deferred tax assets), compared to net income of $24.6 million, or $1.33 per diluted share; and
• Adjusted EBITDA was $16.6 million compared to $25.0 million.

"As indicated in our pre-announcement, our 2019 sales were the second highest in our history, with 2019 playing out close to our expectations," said Juergen Stark, CEO, Turtle Beach Corporation. "While we expect the console gaming market to be soft as consumers prepare for Sony and Microsoft's new consoles slated to launch this fourth quarter, we expect the market to return to growth in 2021. We anticipate continued growth in our PC gaming accessories sales in 2020 and plan to invest in product and brand development to increase our share in this attractive portion of the market."

GUIDANCE:

Turtle Beach sees Q1 2020 EPS of ($0.80)-($0.72), versus the consensus of ($0.23). Turtle Beach sees Q1 2020 revenue of $29-31 million, versus the consensus of $26.94 million.

Turtle Beach sees FY2020 EPS of ($0.45)-($0.12), versus the consensus of ($0.28). Turtle Beach sees FY2020 revenue of $214-224 million, versus the consensus of $217.38 million.

• For the first quarter of 2020, the Company expects revenue to range between $29 million and $31 million. Adjusted EBITDA is expected to range between $(6.5) million and $(7.5) million. Net loss per diluted share is expected to range between $(0.73) and $(0.81), and Adjusted loss per diluted share is expected to range between $(0.72) and $(0.80), both reflecting the aforementioned revenue and EBITDA forecasts. Despite the anticipation of a pretax loss, the Company expects to have a modest tax provision because of taxes in various jurisdictions.
• For the full year 2020, the Company expects revenue to range between $214 million and $224 million. Adjusted EBITDA is expected to range between $5 million and $10 million, reflecting an incremental investment of approximately $9 million to expand the Company\'s market share in the PC accessories market. Net loss per diluted share is expected to range between $(0.13) and $(0.46), and adjusted net loss per diluted share is expected to range between $(0.12) and $(0.45), both reflecting the aforementioned revenue and EBITDA forecasts. Despite the anticipation of a pretax loss, the Company expects to have a modest tax provision because of taxes in various jurisdictions.

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