Turtle Beach (NASDAQ: HEAR) reported Q4 EPS of $0.16, $0.06 worse than the analyst estimate of $0.22. Revenue for the quarter came in at $109.4 million versus the consensus estimate of $108.2 million.

GUIDANCE:

Turtle Beach sees FY2022 EPS of $0.70-$1.20, versus the consensus of $1.14.

• For the full year 2022, the Company expects revenue to be approximately flat, plus or minus 5%, from record 2021 revenues. The mid-point of the range anticipates growth in sell-through and share gains in all categories offset by a reduction in channel inventory and the expectation that console and PC markets may decline somewhat from 2021 primarily due to an exceptionally strong first half of 2021 driven by stimulus checks and stay-at-home orders.
• Gross margins are expected to be roughly 2-3% below our mid 30’s target range, reflecting the impact of 3-4% in higher freight and component costs which we anticipate will abate somewhat over time, as well as the expected return to normal promotional levels, partially offset by factoring higher costs into new product pricing.
• Given the impact of higher costs on gross margin this year, we expect our adjusted EBITDA margin to be within the range of approximately 9% to 11%, within or slightly below our 10+% target, due to the factors stated above. Net income per diluted share is expected to be within the range of $0.70 to $1.20 based upon 17.5 million diluted shares for 2022.

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