Video recreation {hardware} and peripherals maker Corsair Gaming (CRSR) on Tuesday crushed Wall Street’s targets for the primary quarter. It additionally raised its steering for the complete yr. But CRSR inventory fell throughout an general down day for the market.


The Fremont, Calif.-based firm earned an adjusted 58 cents a share on gross sales of $529.four million within the March quarter. Analysts anticipated Corsair earnings of 33 cents a share on gross sales of $449.7 million. On a year-over-year foundation, Corsair earnings rocketed 346% whereas gross sales jumped 72%.

“We are thrilled with our first-quarter financial performance and strategic progress,” Chief Executive Andy Paul mentioned in a news release.

He added, “End demand remained strong for our products and our new products such as the K65 mini RGB keyboard and Elgato’s new accessories debuted well. We introduced 29 new products in the first quarter and we expect this blistering pace of new product introduction to continue throughout the year with several brand new products still to come.”

CRSR Stock Drops Despite Upbeat Report

For 2021, Corsair upped its income outlook to a variety of $1.9 billion to $2.1 billion. Its earlier vary was $1.eight billion to $1.95 billion. It additionally elevated its adjusted earnings outlook to a variety of $245 million to $265 million, vs. its prior steering of $215 million to $230 million.

Wall Street had predicted Corsair earnings of $1.55 a share on gross sales of $1.9 billion in 2021.

On the stock market today, CRSR dropped 2.5% to shut at 32.59.

CRSR inventory went public on Sept. 23 with shares priced at $17. On Oct. 20, CRSR inventory broke out of an IPO base at a buy point of 22.60, in keeping with IBD MarketSmith charts. It notched an all-time excessive of 51.37 on Nov. 14.

Corsair makes high-end gaming peripherals similar to headsets, keyboards, mice and controllers. It additionally sells PC parts similar to reminiscence, cooling methods and energy provides in addition to full gaming PC methods. Plus, it sells livestreaming gear for content material creators.

Investors are targeted on potential headwinds from the reopening of the economic system post-pandemic fairly than the long-term constructive secular progress tendencies benefiting Corsair, Baird analyst Colin Sebastian mentioned in a be aware to shoppers. He reiterated his outperform score on CRSR inventory with a value goal of 48.

Follow Patrick Seitz on Twitter at @IBD_PSeitz for extra tales on client expertise, software program and semiconductor shares.


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