Turtle Beach (NASDAQ:HEAR) Corporation will report its fourth-quarter results on Monday, and while the audio technology company has a chance to grow its market share in 2023, analysts at Wedbush lowered their price target for the stock.
The firm reiterated its ‘Outperform’ rating for the company but its price target dipped to $10 per share from $12. Shares of Turtle Beach (NASDAQ:HEAR) traded at $7.73 on Wednesday afternoon.
Wedbush projects 4Q revenue of $111 million compared to the consensus $110 million and EPS of $0.28 per share, compared to the consensus of $0.21. That revenue estimate assumes a 1% decline in console headsets revenue to $70 million in the quarter.
“We think that as a stand-alone company, Turtle Beach (NASDAQ:HEAR) could reach $300 million in revenue by 2025,” analysts said. “We are confident that gaming peripherals will expand over the long-term as new gamers gained during the pandemic enter the peripheral upgrade cycle over the next 1-2 years. Turtle Beach is positioned to expand its portfolio, and with a significant international expansion opportunity.”
That said, there are short-term concerns.
“Unfortunately, slower user growth during the downturn has delayed Turtle Beach’s upgrade cycle, and high inventory coupled with an inhospitable retail environment has lengthened the growth trajectory,” analysts said.
Wedbush expects Turtle Beach to offer first-quarter revenue guidance in the range of $45 million, down from the firm’s prior estimate of $57 million, and a loss of $0.36 per share.
“[But] despite the difficult macro environment, and likelihood that shares will tread water for another quarter, we think Turtle Beach’s long-term prospects remain favorable,” analysts said.
Contact Andrew Kessel at andrew.kessel@proactiveinvestors.com
Follow him on Twitter @andrew_kessel