Turtle Beach (NASDAQ: HEAR) reported Q1 EPS of ($0.25), $0.47 better than the analyst estimate of ($0.72). Revenue for the quarter came in at $35 million versus the consensus estimate of $29.61 million.

"During the first quarter, as consumers around the world stayed home to help contain COVID-19, we saw strong demand for our products including record-setting retail sales and significant market share gains in March, which drove results that exceeded our expectations across all key financial metrics," said Juergen Stark, CEO, Turtle Beach. "Our headsets are also well-suited for learning and working remotely via video or audio conferencing, which we believe further increased demand. While we expect the increased demand for headsets may subside once stay-at-home measures are relaxed, we believe our sales for the year will exceed our prior forecast.

"According to NPD, U.S. retail sales of console headsets in the month of March for both the industry and for Turtle Beach were the highest ever, including in March of 2018, which was the start of the battle royale surge. The 39% increase in market sales for March partially offset the expected declines in January and February, resulting in total console gaming headset sales in the first quarter declining only 4% year-over-year. In addition to the industry's March surge in U.S. console headset sales, we gained over 500 basis points in revenue share in March, resulting in 57% growth in the U.S. retail sales of our headsets compared to March of 2019.

"We believe these results continue to be a testament to our strong brand, excellent products and our execution at retail. This is especially true in times like these, where retail, supply chain and operational execution can make a big difference both to us and to our retail partners.

"While it is not clear at this point how long this increased demand will continue, we now expect full year revenues, adjusted EBITDA and net income per diluted share to exceed our earlier forecasts. We recognize that these are unprecedented times and that consumer demand and retail supply logistics could fluctuate depending on the course of the pandemic and the response by governments and consumers."

GUIDANCE:

Turtle Beach sees Q2 2020 EPS of ($0.24)-($0.14), versus the consensus of ($0.43). Turtle Beach sees Q2 2020 revenue of $42-47 million, versus the consensus of $27.52 million.

Turtle Beach sees FY2020 EPS of ($0.16)-$0.09, versus the consensus of ($0.41). Turtle Beach sees FY2020 revenue of $224-234 million, versus the consensus of $218.7 million.

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