Gaming headset and audio accessory company Turtle Beach Corp. (NASDAQ:HEAR) is one of the best performing stocks on the NASDAQ to start the week after the San Diego-based company dazzled with its preliminary financial results from the first quarter ended March 31, 2018.
Based upon unaudited info, Turtle Beach expects net revenue in the range of $39.5 million to $40.5 million, blowing away prior guidance of $29.0 million. The top end represents a gain of 181% over the $14.4 million reported during Q1 2017.
Whether the quarter was profitable or not is still up in the air. Management forecast a range from a net loss of five cents per share to net income of three cents per share. Prior guidance was for a net loss of 48 cents per share on a split-adjusted basis compared to a split-adjusted net loss of 81 cents per share in Q1 a year earlier. On Friday, Turtle Beach executed a 1-for-4 reverse split.
Earnings before interest, taxes, depreciation and amortization (EBITDA) is also expected to have improved dramatically. The company sees EBITDA between $3.5 million and $4.5 million, after having previously guided negative EBITDA of $1.5 million follow negative $6.2 million in the year prior quarter.
Turtle Beach attributes the strong quarter in part to the blockbuster success of games like Fortnite and PlayerUnknown's Battlegrounds in driving consumer demand for its products. The company points to gaming console headset market data in NPD's North American video games update for showing Turtle Beach grew its revenue share 640 basis points to 45.4% compared to 39.0% in the same period of 2017.
Complete results from the quarter are expected next month.
After closing Friday at $2.56, shares of HEAR rocketed ahead to as high as $5.75 Monday morning. All the gains haven't been held as of 11:40 a.m. EDT, but shares are still up 43.4% at $3.67.
